It appears that kix resets the WRAPATEOL setting when you shell another kix32.exe process. I tested the following code with 4.53, 4.61, and 4.62 and they all did the same thing. Neither NoVarsInStrings nor NoMacrosInstings reset like this when shelling another kix32, so I don't think this is by design. In fact, simply running kix32.exe with no script causes this.

 Code:
$RC=setoption("WrapATEOL","on")

$longstring="This is a long string of text to see what happens when it reaches the end of the line."
$longstring=$longstring +"  With WrapATEOL on, it should always go to the next line."
? $longstring
shell 'kix32'
?
? $longstring


Produces:
 Code:
This is a long string of text to see what happens when it reaches the end of the
 line.  With WrapATEOL on, it should always go to the next line.

 line.  With WrapATEOL on, it should always go to the next line.s the end of the

Can someone confirm?