Thanks Steve. I found a solution. The REALStudio project file .rbvcp must be converted to LF. This triggers REALStudio to save all files with LF. Need to do a "Save As" to write all file. I converted my new project and it works fine again.
CRs are Mac OS 9 line endings, and neither git nor hg support these when it comes to linewise operations, including diffs. SourceTree uses git/hg to perform all diff operations so if they don't support it, we can't either. This can't have worked in previous versions of SourceTree since CR has never been supported.
You should be able to change any modern Mac OS X app to use LF, it's been the standard line ending for quite a while now.
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