How to make ^M in a buffer go to the beginning of line?

[Marcin Borkowski]

Hi all,

so I have this buffer, which displays the output of a process.  This
output contains loads of ^M characters, since - when run from a terminal
- the process displays a one-line, real-time-updated progress
information (like "n/m processed").  I'd like to mimic this behavior
when calling it from Emacs (programmatically, not from M-x term or
anything like that).

TIA,

-- 
Marcin Borkowski
http://octd.wmi.amu.edu.pl/en/Marcin_Borkowski
Faculty of Mathematics and Computer Science
Adam Mickiewicz University