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Not clear what you mean, Jim, when you say "I wrote this line 2 spaces below the text...see what I mean?"
Do you mean you double-spaced after the sentence that came before, as I have done between the previous sentence and this one?
From what I can see of your message, there is a single character space between your two sentences...no line break at all. Are you sure you pressed the Enter key twice before typing your final line, and did it look OK in the message editing box when you did?
As Shawn notes, the new software does handle whitespace differently from the old method, but this should only show up at the very top of the message, and between the last line of the message and your signature. It ignores whitespace above and below the body of your message, in other words. I typed several blank lines before the start of this message and several before my signature, by way of example, but you see that there is no wasted space. That's normal now.
Carriage returns (pressing the Enter key) anywhere inside the message, however, (ie, separating paragraphs) should behave as they always did.
In saying this, I'm assuming you were using the Enter key for line breaks in the first place, and not trying to space lines using the spacebar to insert lots of blank spaces. Spacing text out ......... like ............ this ......... doesn't work any more, and really isn't supposed to work that way on Web pages in the first place. (There is no magic spacebar on my computer, by the way. I had to play a little trick with text color to simulate the effect.) Thus, you can't separate lines by using the spacebar--only the Enter key.
Now, if you were using the Enter key for line breaks and it still didn't work, then it might be helpful to know what operating system and browser are you using? In some, the text edit box might not behave the same way as it does on most of our systems.
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John
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