There is a way to convert PDF to ePub and have many less spacing problems with the paragraphs. In the Convert settings, open Heuristic Processing and check the Enable Heuristic Processing box. Then check the Unwrap Lines box and enter 0.22 in the Line un_wrap factor box. Run the conversion and you should see a major difference. You might still want to do some editing, but there should be a lot less editing to do with the paragraph spacing.
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