I saw ticket #1967 for Terminology and have noticed a slightly different bug. 201301051033 version of terminology from the hannes-janetzek-enlightenment-svn-quantal ppa on Ubuntu.
When you select a block of text and some of the lines are ended by spaces, the text should still wrap normally. Newlines are inserted.
For example, this debugging message:
CRI: efreet_cache.c:1068 on_send_register() eina_log_print() unknown domain -1, original message format '%s %s'
The first line has 79 characters and a space. There is no newline printed between the first and second line, it should wrap as in a paragraph but sadly it is on a separate line; the space either becomes a newline or has a newline added to it.
This bug should be easy for you to reproduce.