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When I configure preferences for a document class, I can choose whether to Create new files as PC, UNIX or Mac. Do I base my choice on what my computer is or on what the web server is? For example, I am editing files on a PC but they are destined to reside on a Linux server, so which option would I choose?

I hate to sound evasive, but the format should be based upon the need.

PC format files terminate with a CR (\x13) and LF (\x10).

Unix format files terminate with a LF only.

Mac format files terminate with a CR only, though I've given to understand that Mac went to the Unix convention of LF only at some point.