My repository has a readme.txt file, which currently is copied verbatim into the rendered html for the project summary. This causes the readme to lose all formatting and spacing, and look absolutely terrible.
I would expect that A file called 'readme' or 'readme.txt' be displayed as preformatted text (wrapped in <pre></pre>) and any special html characters (such as '<' '>' and '&') be escaped.
'readme.md' should be parsed as markdown, and 'readme.rst' as reStyledText
This falls in line with how BitBucket/GitHub display readme files.
This might also go well with a repository setting which allows the repository owner to choose a specific readme file and renderer, and use the above rules only as a default.