I have applied a stationary selection to my default emails. When I do this,
the default font switches from Normal to Paragraph. This results in double
spacing of all of my Hard Returns. I thought at one point, I found a fix for
this, but I cannot remember what it was. I type my email and then have to
select the whole thing and change the font style to Normal and it is fine. I
am NOT using Word as my editor.

Not an answer - but the same problem.

I use Outlook 2002 and Word 2000 (not sure if the versions makes a
difference).

Also, signatures do not behave properly. Text comes through okay, but font
sizes and colour gets changed.