How to remove extra space after each paragraph line

[Bob]

I am having following problem with Outlook 2003:

(Apology in advance as the details are lengthy.)

My Outlook mail setting format:
-- Compose message format = HTML
-- Both options to use Microsoft word for email editing and to read RTF
messages have been disabled (not selected)

Now I create a new message and type few lines as following:

"a. Test message - line 1
b. Test message - line 2
c. Test message - line 3"

Then I send the email to Hotmail user. The receiver gets email and looks
just as displayed on the outlook message.
====

Now I type few lines in Microsoft word 2003 document and then copy/paste
into a new outlook message (for example below):

"a. Test message - line 1
b. Test message - line 2
c. Test message - line 3
d. Test message - line 4"

So far the Outlook email display looks fine for the above lines. Then I send
the email to Hotmail user. The receiver gets email; however, the formating is
messed up and instead it shows following:

"a. Test message - line 1

b. Test message - line 2

c. Test message - line 3

d. Test message - line 4"

As shown above, somehow taking a text from Microsoft word and pasting into
Outlook, it added extra lines when the email is received by the Hotmail user.

======================
Then I checked my normal.dot (for Microsoft word) to see what kind of
paragraph setting and it shows "0 pt" for paragraph spacing above and after.

Then I checked my email.dot (for Microsoft word) to see what kind of
paragraph setting and it shows "0 pt" for paragraph spacing above and after.


So I am confused to whats causing this. Any help on your part would be
highly appreciated.