How do I set a preferred spacing in Outlook for replying to emails?

In Outlook 2013 this is still a very annoying problem. The solution is to:

  • Go to "pop-out" your email in Outlook 2013 so that you are looking at it in full screen (you may not to do need this step in 2007 or 2010 I believe).
  • Choose the "Format Text" tab at the top and select the "Change Styles" drop-down near the right end of the ribbon.
  • In "Paragraph Spacing" you need to go to "Custom Paragraph spacing". Even the "Compact" option will not do what you need.
  • Once the box is open change the Before and After options to "0 pt" in "Paragraph Spacing". Remember to select the "New documents based on this template" radio button too.