It's not actually double-spacing that is the problem. Word changed the
default to add more space between paragraphs, so that each paragraph
will be single-spaced, but between paragraphs, you get extra space.
Paragraphs are created every time you hit enter.
To change in just this document, select all, go to Format | Paragraph.
Look down to the find the Spacing: After field, and change 10 to 0.
To change this in all documents created from now on, change the Normal
style.
First, select Format | Style. Normal should be selected.
Click on Modify--make sure "add to template" is CHECKED. You'll see a
Format menu in the bottom of the dialog--select Paragraph from it, and
change the Spacing: After setting from 10 to 0.