My apologies...this is on an AIX machine. I'm also using binmode. In fact, this is the entire program (just in case I leave any other important facts out! :) ):

#!/usr/bin/perl

use strict;

my $inFile = "TST5.NDM.SB.IOWSFLAT.STMTS.MRDF.TEST";
my $outFile = "$inFile.out";
my $buff;

open(INFP, $inFile);
open(OUTFP, ">$outFile");
binmode(INFP);
binmode(OUTFP); 

my $cnt = 1;
my $matchCnt = 0;

while (read(INFP, $buff, 128)) {

  print OUTFP $buff;
  
  my $target = "\x0D";
  if ($buff =~ /$target/) {
    print $buff;
    print "\n found \$target on 'line' $cnt, ";
    print "'" . ord($&) . "', '\x$&'\n";
    ++$matchCnt;
  }
  ++$cnt;
}

print "found target $matchCnt times\n";
close (INFP);
close (OUTFP);