You have dos/windows line-endings.
Linux tries to find an interpreter called "/bin/sh
^M", that does not exist.
Normally if you download a svn-version this should not happen (it does not happen for me at least).
There are some of the .cpp and .h files with dos/windows line-endings, what that doesn't matter. But shellscripts or for example .am-files might be critical.
There is a commandline tool called dos2unix that can be used to convert the line-endings.
On debian it's in a packet calle "tofrodos". I don't know, where you can find it on FC7.
With the tool you can run
find . -exec dos2unix {} \;
from the codeblocks-source root directory.