If you format the paragraph styles in MS Word it works.
Never have:
More than one space at a time anywhere
Spaces at start or end of a paragraph
Tabs anywhere
Empty lines
Use Paragraph styles to do all these things. Add the docx to Calibre and convert to epub2.
Remove the docx format
Make all other formats from the epub.
Normally the paragraph after a heading (especially if centred) or after any centred object has no first line indent and all other paragraphs do have a first line indent. The other scheme is a top and/or bottom margin on paragraphs. Don't use both schemes.
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