Ok, i just typed that command, and i don't see any extra returns. I used the command line edit program to edit this file on my windows machine. Here is what i typed:

empeg:/etc/preinit.d# rw
empeg:/etc/preinit.d# cat M01launcher
#!/bin/sh
echo "Starting launcher..."
/usr/apps/launcher
empeg:/etc/preinit.d# ro

This looked good to me, anything else that might be wrong?