Newline character encoding in Description field is not working

I have written a series of SOAP web services for HPSM 9.2 which work very well for creating new tickets and changing states.  However, I have a client who is experiencing problems with the new line character (
) not being interpreted correctly. 

For some reason, HPSM is treating the first ampersand as an actual ampersand rather than first character in the sequence for a line break.

Any thoughts?