Change control characters

Hi,
I am using Vim 7.4 on Windows. I used to be able to do replace control charters like ^M in command mode by entering ^V and followed by ^M so that the command
:%s/^V^M/\r/
will fix the carriage return issue of a file.

The character ^ is the CTRL key, therefore the string :%s/^V^M/\r/ above is actually shown as
:%s/^M/\r/ when I do this on Mac, which is also 'vim'.
However, on Windows the CTRL-V key always 'pastes' whatever is in the cut buffer instead of entering control charter editing mode no matter which mode I am in.

Is this a bug or is there something not set properly.

Alex

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