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I am having the same problem with News 1.44., extra line breaks in the text.
One work around, which sometimes works, is to edit the story again and then when you safe the extra line breaks disappear.
If this does not work, if you look at the HTML view in the Koivi editor, you can notice that a linebreak in the HTML file will become a linebreak in the real text when published on the page.
I hope someone can find a solution for this.