^M in compilation buffers

[Sam Steingold <sds@gnu.org>]

Hi,
omake prints progress bar using the usual ^M terminal trick.
last week it was parsed nicely by emacs, i.e., the progress bar was updated 
in-place and, eventually, overwritten (by the last omake message).
today, the freshly compiled cvs head emacs does not do that: the ^M character 
is inserted into the *compilation* buffer as is (instead of being interpreted 
as C-a C-k):
[===                   ] 01358 / 11812^M [======                ] 02995 / 
11837^M [======                ] 03039 / 11837^M [======                ] 03244 
/ 11849^M [======                ] 03337 / 11849^M [======                ] 
03428 / 11849^M [======                ] 03502 / 11849^M [======= 
  ] 03598 / 11849^M [=======               ] 03659 / 11849^M [======= 
      ] 03692 / ....
any advice?
Thanks
Sam.