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Outlook Defaulting to Paragraf Style

A client of mine has a stupid problem with outlook, but it's a problem non the less. First she used outlook 2000  and in my troubleshooting process I upgraded her to Outlook 2003 and it's still doing the same thing. When ever she clicks new and starts typing it paragraphs. Meaning that when ever she presses enter, it skips a line. I checked every setting and every post that I could find on the net with no result. I recreated her signature several times from scratch as well. Also note that she is using HTML to edit her e-mails and not word. I opened one of her signatures in notepad and pasted the HTML here for you guys to take a look. Let me know if you need anything else.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<html xmlns:v="urn:schemas-microsoft-com:vml"
xmlns:o="urn:schemas-microsoft-com:office:office"
xmlns:w="urn:schemas-microsoft-com:office:word"
xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv=Content-Type content="text/html; charset=windows-1252">
<meta name=ProgId content=Word.Document>
<meta name=Generator content="Microsoft Word 9">
<meta name=Originator content="Microsoft Word 9">
<link rel=File-List href="./karen%20new_files/filelist.xml">
<link rel=Edit-Time-Data href="./karen%20new_files/editdata.mso">
<link rel=OLE-Object-Data href="./karen%20new_files/oledata.mso">
<!--[if !mso]>
<style>
v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
.shape {behavior:url(#default#VML);}
</style>
<![endif]-->
<title>karen new Signature</title>
<!--[if gte mso 9]><xml>
 <o:DocumentProperties>
  <o:Author>Karin</o:Author>
  <o:Template>Normal</o:Template>
  <o:LastAuthor>Karin</o:LastAuthor>
  <o:Revision>14</o:Revision>
  <o:TotalTime>5</o:TotalTime>
  <o:Created>2007-11-19T11:42:00Z</o:Created>
  <o:LastSaved>2007-11-27T11:35:00Z</o:LastSaved>
  <o:Pages>2</o:Pages>
  <o:Words>60</o:Words>
  <o:Characters>344</o:Characters>
  <o:Company>Ikapa Tours &amp; Travel</o:Company>
  <o:Lines>2</o:Lines>
  <o:Paragraphs>0</o:Paragraphs>
  <o:CharactersWithSpaces>422</o:CharactersWithSpaces>
  <o:Version>9.3821</o:Version>
 </o:DocumentProperties>
</xml><![endif]-->
<style>
<!--
 /* Font Definitions */
@font-face
 {font-family:"Arial Unicode MS";
 panose-1:2 11 6 4 2 2 2 2 2 4;
 mso-font-charset:128;
 mso-generic-font-family:swiss;
 mso-font-pitch:variable;
 mso-font-signature:-1 -369098753 63 0 4129279 0;}
@font-face
 {font-family:Verdana;
 panose-1:2 11 6 4 3 5 4 4 2 4;
 mso-font-charset:0;
 mso-generic-font-family:swiss;
 mso-font-pitch:variable;
 mso-font-signature:536871559 0 0 0 415 0;}
@font-face
 {font-family:"\@Arial Unicode MS";
 panose-1:2 11 6 4 2 2 2 2 2 4;
 mso-font-charset:128;
 mso-generic-font-family:swiss;
 mso-font-pitch:variable;
 mso-font-signature:-1 -369098753 63 0 4129279 0;}
 /* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
 {mso-style-update:auto;
 mso-style-parent:"";
 margin:0cm;
 margin-bottom:.0001pt;
 mso-line-height-alt:6.0pt;
 mso-pagination:none;
 font-size:12.0pt;
 font-family:Arial;
 mso-fareast-font-family:"Arial Unicode MS";}
a:link, span.MsoHyperlink
 {color:blue;
 text-decoration:underline;
 text-underline:single;}
a:visited, span.MsoHyperlinkFollowed
 {color:purple;
 text-decoration:underline;
 text-underline:single;}
p
 {margin-right:0cm;
 mso-margin-top-alt:auto;
 mso-margin-bottom-alt:auto;
 margin-left:0cm;
 mso-line-height-alt:6.0pt;
 mso-pagination:none;
 font-size:12.0pt;
 font-family:"Arial Unicode MS";}
@page Section1
 {size:595.3pt 841.9pt;
 margin:72.0pt 90.0pt 72.0pt 90.0pt;
 mso-header-margin:35.4pt;
 mso-footer-margin:35.4pt;
 mso-paper-source:0;}
div.Section1
 {page:Section1;}
-->
</style>
<!--[if gte mso 9]><xml>
 <o:shapedefaults v:ext="edit" spidmax="1029"/>
</xml><![endif]--><!--[if gte mso 9]><xml>
 <o:shapelayout v:ext="edit">
  <o:idmap v:ext="edit" data="1"/>
 </o:shapelayout></xml><![endif]-->
</head>
<body lang=EN-GB link=blue vlink=purple style='tab-interval:36.0pt'>
<div class=Section1>
<div align=center>
<table border=0 cellspacing=0 cellpadding=0 width=641 style='width:480.75pt;
 mso-cellspacing:0cm;mso-padding-alt:0cm 0cm 0cm 0cm'>
 <tr style='height:.75pt'>
  <td style='padding:0cm 0cm 0cm 0cm;height:.75pt'>
  <p style='margin:0cm;margin-bottom:.0001pt'><!--[if gte vml 1]><v:shape id="_x0000_s1025"
   style='position:absolute;margin-left:0;margin-top:0;width:479.25pt;height:82.5pt;
   z-index:1' coordsize="21600,21600" o:spt="100" adj="0,,0" path="">
   <v:stroke joinstyle="round"/>
   <v:imagedata src="./karen%20new_files/image001.png" o:title=""/>
   <v:formulas/>
   <v:path o:connecttype="none"/>
  </v:shape><![if gte mso 9]><o:OLEObject Type="Embed" ProgID="MSPhotoEd.3"
   ShapeID="_x0000_s1025" DrawAspect="Content" ObjectID="_1257675709">
  </o:OLEObject>
 <![endif]><![endif]--><![if !vml]><span style='mso-ignore:vglayout;position:
  absolute;z-index:0;margin-left:0px;margin-top:0px;width:639px;height:110px'><img
  width=639 height=110 src="./karen%20new_files/image002.jpg" v:shapes="_x0000_s1025"></span><![endif]><span
  style='font-family:Arial'><o:p></o:p></span></p>
  </td>
 </tr>
 <tr style='height:60.0pt'>
  <td valign=top style='padding:7.5pt 7.5pt 7.5pt 7.5pt;height:60.0pt'>
  <p class=MsoNormal>&nbsp;</p>
  <p class=MsoNormal>&nbsp;</p>
  <p class=MsoNormal>&nbsp;</p>
  <p class=MsoNormal>&nbsp;</p>
  <p class=MsoNormal>&nbsp;</p>
  <p class=MsoNormal><![if !supportEmptyParas]>&nbsp;<![endif]><span
  style='font-size:10.0pt;mso-bidi-font-size:12.0pt'><o:p></o:p></span></p>
  </td>
 </tr>
 <tr>
  <td style='border-top:solid #5EB030 .75pt;border-left:none;border-bottom:
  solid #19183A 4.5pt;border-right:none;background:#F8F8F8;padding:7.5pt 7.5pt 7.5pt 7.5pt'>
  <p class=MsoNormal><span class=style31><span style='font-size:9.0pt;
  mso-ascii-font-family:Arial;mso-hansi-font-family:Arial'>Karen Louw</span></span><br>
  <span class=style41><span style='font-size:9.0pt;mso-ascii-font-family:Arial;
  mso-hansi-font-family:Arial'>Senior Consultant - Administration</span></span><br>
  <span class=style11><span style='font-size:8.5pt;mso-ascii-font-family:Arial;
  mso-hansi-font-family:Arial'>Email:</span></span> <a
  href="mailto:karen@ikapa.co.za"><span style='font-size:8.5pt;color:#79B144'>karen@test.co.za</span></a>
  • <span class=style11><span style='font-size:8.5pt;mso-ascii-font-family:
  Arial;mso-hansi-font-family:Arial'>Web: </span></span><a
  href="http://www.ikapa.co.za" target="_blank"><span style='font-size:8.5pt;
  color:#79B144'>http://www.ikapa.co.za<br>
  </span></a><span class=style11><span style='font-size:8.5pt;mso-ascii-font-family:
  Arial;mso-hansi-font-family:Arial'>Cell: 072 246 1234 • Tel: +27 21 516-6666</span></span>
  • <span class=style11><span style='font-size:8.5pt;mso-ascii-font-family:
  Arial;mso-hansi-font-family:Arial'>Fax: +27 21 517 1234</span></span><br>
  <br>
  <strong><span style='font-size:8.5pt;color:#18183C'>Physical Address:</span></strong><span
  class=style11><span style='font-size:8.5pt;mso-ascii-font-family:Arial;
  mso-hansi-font-family:Arial'> iKapa Place, 94 Voortrekker Rd, Salt River,
  South Africa 7925</span></span><span style='font-size:8.5pt;color:#18183C'><br>
  <strong>Postal Address:</strong><span class=style11><span style='mso-ascii-font-family:
  Arial;mso-hansi-font-family:Arial'> P O Box 123, Someplace, South America,
  7935</span></span></span></p>
  </td>
 </tr>
</table>
</div>
<p class=MsoNormal>&nbsp;</p>
</div>
</body>
</html>

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ASKER CERTIFIED SOLUTION
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war1
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ASKER

Hi war1,

Thanks for the response, but the problem that she is getting happens on every line, not only every paragraph.
When typing a paragraph, one does not usually hit Enter.  One lets the words wrap.

If she uses Plain Text format, will double spacing stop?

If she uses Shift + Enter once, will that work?

Do you have the latest updates for Outlook 2000 or 2003?  But are up to Service Pack 3.
Plain text, yes it works but she can't use her complex signature in plain text.
Shift + Enter, yes it works but she isn't happy with having to do that with every email (Trust me I know what your thinking war1)
I just installed it and it didn't make a difference.