I'm having difficulties passing org variables into shell source blocks.
This is using Windows 7 and Cygwin with bash shell. For instance, the
following

#+BEGIN_SRC sh :var x="."
  ls $x
#+END_SRC

fails with the error message (as displayed in emacs)

  ls: cannot access .^M^M : No such file or directory


As far as I can see, the first ^M stems from org-babel-sh-var-quote-fmt,
and the second from org-babel-expand-body:generic, but I haven't been able
to figure out a solution. Any suggestions?