You're in such totally unsupported territory all I could do is guess and it would likely be a waste of time. Roll back to XP 32 bit or upgrade to CS4 and Vista 64 (or wait a bit and upgrade to Win 7 as well).
I had the exact same issues with CS2 and the 64-bit version of Windows 7. Your fix still works, W84Wind, thanks! So easy after being on the phone with Adobe Tech Support for half an hour and getting nowhere. And thanks, Daniel, for your original post. I'd be stuck doing a premature upgrade otherwise. (I can smell CS5 in the oven... mmmmmm...)
The bonus: Carriage return appears to work just fine in InDesign CS2 on Windows 7. That was a fairly annoying incompatibility with Vista.