Sorry you're still having problems.
With regard to the spacing issue, it seems that the way things are initially set up with HTMLEditor, to get a line between paragraphs you need to hold down 'Shift' and press Enter twice. This is while HTMLEditor is set up (default) to inset <p> tags when just Enter is pressed.
If you change it so that HTMLEditor inserts <br> tags when you press Enter, you would just hit Enter twice to get the space between lines. This seems a little more intuitive to me, so it's how I set mine up.
FCKConfig.EnterMode = 'p';
and change it to:
FCKConfig.EnterMode = 'br';
Then upload those files to your live site. I had to close the browser tab and clear my browser cache to see the change.
[There does seem to be an option in the fckconfig.js file for setting this - at or near lines 122-123, but changing those made no difference for me].
The line to change is at or near line 34.
There may be a more 'correct' way of doing this, hopefully a WA person will let us know if there is. So back-up any files you may change!