Looks like a custom forum?
Try something like this if the database has the new-line characters stored (meaning that it has the windows "you pushed enter" key in there; you'll know if this works):
$article=str_replace($emote_text,$emote_html,$r[4]);
$article=str_replace(array("\r\n", "\n\r", "\n", "\r"), "<br />", $article);
First line's something off an old version of my website, $r[4]'s the column in mysql that had the news. That entire first line could actually get erased (and I would, it's just there cause it's what originally sets $article).
Replace $article with your variable and you'll be ok - just be advised about that second line:
1) You'll notice it sets $article to a modified version of $article. If you wanna fix that, the one inside str_replace is the variable it's modifying, the one outside should be whatever variable you're going to use to display it on screen.
2) More for documentation purposes than anything, I pulled that off of some random php website. The \r and \n are apparently windows newline characters, and depending what system you were on when you wrote them, it'd leave both, one, or the other. So we're basically solving it by taking any combination of the two and replacing it with a line-break (like what GamingX said)
3) No credit needed cause I've no idea where I got it, but I know wherever I got it from didn't need credit either >_<
Lemme know if it works; pulled it straight out of my old news php file
