Applied patch from Matt Kraai as per his email:

However, the case of

	grep foo$ file

didn't work, due to a problem with the flags used in regular expression
compilation.  The attached patch fixes this problem.

---patch-------
Index: grep.c
===================================================================
RCS file: /var/cvs/busybox/grep.c,v
retrieving revision 1.30
diff -u -r1.30 grep.c
--- grep.c      2000/07/04 22:17:01     1.30
+++ grep.c      2000/07/10 08:57:04
@@ -141,8 +141,10 @@
        if (argv[optind] == NULL)
                usage(grep_usage);

-       /* compile the regular expression */
-       reflags = REG_NOSUB; /* we're not going to mess with sub-expressions
        */
+       /* compile the regular expression
+        * we're not going to mess with sub-expressions, and we need to
+        * treat newlines right. */
+       reflags = REG_NOSUB | REG_NEWLINE;
        if (ignore_case)
                reflags |= REG_ICASE;
        if ((ret = regcomp(&regex, argv[optind], reflags)) != 0) {
---patch-------

Thanks, Matt, it works great.

findutils/grep.c

@@ -141,8 +141,10 @@ extern int grep_main(int argc, char **argv)
 	if (argv[optind] == NULL)
 		usage(grep_usage);
 
-	/* compile the regular expression */
-	reflags = REG_NOSUB; /* we're not going to mess with sub-expressions */
+	/* compile the regular expression
+	 * we're not going to mess with sub-expressions, and we need to
+	 * treat newlines right. */
+	reflags = REG_NOSUB | REG_NEWLINE; 
 	if (ignore_case)
 		reflags |= REG_ICASE;
 	if ((ret = regcomp(&regex, argv[optind], reflags)) != 0) {

grep.c

@@ -141,8 +141,10 @@ extern int grep_main(int argc, char **argv)
 	if (argv[optind] == NULL)
 		usage(grep_usage);
 
-	/* compile the regular expression */
-	reflags = REG_NOSUB; /* we're not going to mess with sub-expressions */
+	/* compile the regular expression
+	 * we're not going to mess with sub-expressions, and we need to
+	 * treat newlines right. */
+	reflags = REG_NOSUB | REG_NEWLINE; 
 	if (ignore_case)
 		reflags |= REG_ICASE;
 	if ((ret = regcomp(&regex, argv[optind], reflags)) != 0) {