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Open the book with the line between the paragraphs in the editor.
Then make sure that the live css tool is visible.
Put the cursor on a < p > tag and take a look at the 'computed final style' for the paragraph in the live css.
If there are entries for 'margin-top' or 'margin-bottom' with value other than '0', then that produces the empty lines.
You can then go through the displayed styling information in the live css an follow the link to the css part where the margin is set and change it.
If the margin is already set to '0', there are probably some empty paragraphs or line breaks (< br >) in the html code that you have to remove.
I hope this helps.
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