Extra space appearing in Outlook 2007 and sometimes Word 2007

We recently upgraded from Microsoft Office 2003 to Microsoft Office 2007.  In Outlook and sometimes in Word, when I am typing in information and I hit the Enter key and extra space appears in my formatting.  Even if I change the line spacing to single line spacing and it looks the way I want it to, when I send the email and the other person opens it up, that extra space shows up again.  What is causing this and how can I fix it permanently?
karaflanaganAsked:
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Ivano ViolaSystem AdministratorCommented:
I think you have to adjust the link spacing in MS Word. See attached:
Open Word  - On the Home tab, you'll see Paragraph tools. Click on the small little icon on the bottom-right of the paragraph box. Set your setting to match the attached pic.

Let me know how it goes.
Capture.JPG
Ivano ViolaSystem AdministratorCommented:
I forgot to mention that if you would like the setting to be saved as the default settings, click on the Default... button on the bottom of the paragraph settings box. Click Yes to effect all new documents.
karaflanaganAuthor Commented:
Do you have any idea how to change this setting in Outlook?
Ivano ViolaSystem AdministratorCommented:
I don't use Outlook but my impression was that it uses Word settings for composing emails. I could be wrong though. Is the problem still occurring in Outlook after making the changes?
Ivano ViolaSystem AdministratorCommented:

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