Hello and thanks for the replies. I don't know how long it would have taken me to even think of fetchmail and exim. I think the problem was as Daniel Barlow described, exim was not listening so fetchmail was doing something else. I thought fetchmail would fail when it couldn't find an smtp port, but I think it was simply putting the mail in a spool file. Once I restarted exim and fetchmail, those ^M's disappeared.
The stripcr option for fetchmail also removed them, but I thought it would be better to fix the source of the problem, rather than use this option. In addition to the ^M's, I saw a lot of MIME content and boundary markers. I don't think mail coming in with attachments was being handled correctly either. Finally, for solutions within Gnus, the gnus-treat-strip-cr worked for the message bodies, but not for the headers. My elisp programming is pretty weak. If I had: (setq gnus-treat-strip-cr t) the ^M's were removed from the message body. If I had: (setq gnus-treat-strip-cr head) the ^M's were removed from the headers, but not the body. I need to get back to the elisp-intro. Have a good evening. Brian Flaherty