Q: The daemon won't run, getting errors with ^M lines in the configuration file.
A: You edited the config file on a windows machine with either microsoft word or wordpad.
Windows, for some reason, finds in necessary to end all the lines with a ^M tag. While this tag isn't shown while editing in wordpad, on linux you can seem them clearly. You will need to de-windows-fy the configuration file. Under linux this can be done by installing "tofrodos".
After installing the above package, simply type the following:
dos2unix <dosfile> <outputfile>
Where "<dosfile>" should have the name of the file with the ^M markings and "<outputfile>" the name of the file you wish to store the changes in!