Scratch the last post since \f (form-feed) is an illegal character for XML.
I went ahead and rummaged about in the source and got to BindingTraverserXSLT.java where I see it has:
StringTokenizer st = new StringTokenizer(r, "\n\r\f");
// tokenize on the newline character, the carriage-return character, and the form-feed character
.. so that appears to be invalid since \f is not valid to put into the XML in the first place
In any case the tokenizer seems to be pointless because when the string is extracted from the XML data-part with this line of code:
String r = BindingHandler.xpathGetString(pkg, customXmlDataStorageParts, storeItemId, xpath, prefixMappings);
.. then the string comes out as "I amthe newfield 1" so effectively any "\n\r\f" or "\n\r\" or "\n" gets removed completely so there will never be anything for the string tokenizer to find in that string.
Based on this, I would say that this appears to be a multi-part bug.