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I can see there are overall Preferences/Common options/Look and feel/Layout which has "Remove spacing between paragraphs" turned off. And there's Convert Books (with MOBI selected as the output format) and Look and feel/Layout which also has the same option turned off. So I'm thinking I have it all covered, yet I am still getting the paragraphs without spacing and with first line indents.
The "Remove spacing between paragraphs" seems to be "on" some how but I just can't see why. I may be wrong but the output looks exactly as if this option has been set.
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