This has been an issue in form or another since the dawn of word processing. And as such there has been a fairly good and easy solution since shortly thereafter. Assuming you have Word or some other reasonably competent word processing program all you need do is:
1) Open the file in the word processor.
2) Using the search and replace feature in the program search for each occurrence of "double return" "^p^P" (the end of a paragraph) and replace it with a character not used in the text (I find that the tilde "~" or the accente "`" two useful characters) also the search string for a return, at least in Word is "^p" no quotes of course.
3) Now do a search and replace of all remaining "single return" "^p" and replace them with a space.
4) Do a search for two spaces and replace them with single spaces.
5) Finally do a search for the special character used in step two and replace them with two returns.
6) Save the file
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