How can I disable lines joining?

Hi!
Thank you for good template.
But I see some issues which prevent me from using it.
1. I don’t like that posts are shown with cut line breaks (\r\n) on main page. How can I show them as is with line breaks?
2. Which way can I setup how much text will be shown for posts on main page before read more link? I would want some more amount of text shown than current one.

Thank you.