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Here's a fiddle that shows the problem: http://jsfiddle.net/9vYCX/
To fix this, a bunch of nasty unicode characters could be escaped prior to parsing using a regex not unlike Douglas Crockford's from json2.js.
Here's a fiddle with "the fix" http://jsfiddle.net/9vYCX/1/
It doesn't seem like outputting the text \u2028 is the correct fix.
Hm, right. Initial thinking was that it would make the error obvious and easier to fix. However, replacing with a space would be a good enough solution. Providing a mapping function/array would be better, but probably unnecessary for majority (if not all) use-cases.
Escape unicode newlines in string literals