Hi,
You can use \r and \n in a textbox, as long as you go to Properties / Display Tab and check the "Paragraph breaks" checkbox.
So, you can achieve the display that you are looking for using a textbox, not a Rich Textbox.
If you still want you use a Rich Text Box, which stores XHTML, you need to use appendChild to add lines...(I would stick to option 1).
Hope that it helps.
Regards,
Franck Dauché