Microsoft Office 2007? Why does it leave a space between paragraphs?

Sazzy

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It's really annoying as I get a space between paragraphs which I can't seem to disable. I don't WANT an extra space, just a continuation of normal typing. How can I stop this happening? I even saved in 1997/2003 compatible mode, in the hope of when using 2003 on another computer I could just get normal spacings...but it STILL does it. ARGH, It's driving me mad and making my documents look disjointed. Please help me.
 
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