Restore Data Encountered the ERROR: literal carriage return found in data Error

Hi All,

After a pg_dumpall, I'm trying to restore with psql -e template1 -f 21.bak &>/tmp/out21.bak . I'm trying to migrate to Postgres 8.3.8.

I'm getting lots errors like this one:
"psql:21.bak:340557: ERROR: literal carriage return found in data
HINT: Use "\r" to represent carriage return."
After doing some research, one person posted here : http://forums.devshed.com/postgresql-help-21/restoring-data-from-pg-7-1-3-7-4-release-99865.html and this person said
"sed 's/^M/\\r/' alldump.sql > alldump2.sql
where ^M is entered by pressing Ctrl+V then Enter. "

I'm confused why "Ctrl+V"? I thought that is a paste function key.

Mary