CR's don't show as junk on cat. Depending on stty settings, they either don't show at all or show as extra line feeds.

Try /bin/od -bc init | /bin/more to see whether you have just LFs or also CRs.

Also note that path at the prompt is not necessarily the same as the one with which init runs (I have no idea whether it actually is the same or not).
_________________________
Dragi "Bonzi" Raos Q#5196 MkII #080000376, 18GB green MkIIa #040103247, 60GB blue