eol in emacs23

[Seweryn Kokot <sewkokot@gmail.com>]

Hello,

In Emacs manual (info "(emacs)Recognize Coding")

,----[ (info "(emacs)Recognize Coding") ]
|    Emacs recognizes which kind of end-of-line conversion to use based on
| the contents of the file: if it sees only carriage-returns, or only
| carriage-return linefeed sequences, then it chooses the end-of-line
| conversion accordingly.  You can inhibit the automatic use of
| end-of-line conversion by setting the variable `inhibit-eol-conversion'
| to non-`nil'.  If you do that, DOS-style files will be displayed with
| the `^M' characters visible in the buffer; some people prefer this to
| the more subtle `(DOS)' end-of-line type indication near the left edge
| of the mode line (*note eol-mnemonic: Mode Line.).
`----

it is written that if inhibit-eol-conversion is non-nil
then I will see ^M at every line instead of (DOS) in modeline. However
no matter to what inhibit-eol-conversion is set (t or nil) I always get
(DOS) and no ^M when visiting a DOS file.

Any idea what is wrong?

Thanks in advance.
-- 
regards,
Seweryn