Datatypes That Preserve Rich Text

Hey there -
I have a textbox (C# 1.1 OR 2.0) that I want to take it's contents and post to a datatype of some sort in SQL2k5 and have it preserve the breaks (return keystrokes) so when the data is presented, it can hold a paragraph form. Is this possible?
something like this: <asp:TextBox id="txtContent" runat="server" TextMode="MultiLine" Rows="10"></asp:TextBox>
Right now, I'm using nvarchar(4000) as the datatype but if I were to type, say 3 paragraphs, the data returned in the datagrid I bind that data to shows only one long string of data. For the time being, I have been puttting HTML formatting tags in the content I'm posting to the DB, but ultimately don't want to have to do that. I don't want to have to use a Text Editor (like FTB or FCKeditor) if necessary because they seem very much involved for the simple need I have which is to preserve paragraph formatting.
So, is there another datatype in SQL2k5 that I should be using? Or are there simple code snippets I can utilize that will recognize a carriage return as a </p><p> tag?
I'm trying to migrate to 2.0 as much as possible, so any C# code would be greatly appreciated in 2.0!
Thanks for your help!
iSheahan