Hey, I've been using Umbraco for a while now and feel like I never give anything back, so heres a quick post on a workaround for a little bug I found in the xslt library. (The bug has been reported by someone else in codeplex, if this affects you please go vote for it.)

library.RemoveFirstParagraphTag has the following line:

            text = text.Trim().Replace("\n", string.Empty).Replace("\r", string.Empty);

Which which combined with the Richtext editor inserting \r\n chars in the html source of long paragraphs results in some of the white space between words disappearing alltogether.

Personally I don't see the need for this replacement at all as html will treat both \r and \n as whitespace and I can't see that TinyMCE will insert newlines in the middle of tags. If I'm proven wrong about that then the replace needs to be upgraded to a regex replace that only removes \r and \n's from within tags.

Anyway to the wrokaround: xslt allows inline code in many languages but here I use c# so I could simply copy the routine from the ubraco.library and remove the offending line.

<msxml:script language="C#" implements-prefix="pageScript">
    <msxml:assembly name="System.Web" />
    <msxml:using namespace="System.Web" />
    <![CDATA[
        public String RemoveFirstParagraphTag(string text)
        {
            text = text.Trim();
            if (text.Length > 5)
            {
                if (text.ToUpper().Substring(0, 3) == "<P>")
                    text = text.Substring(3, text.Length - 3);
                if (text.ToUpper().Substring(text.Length - 4, 4) == "</P>")
                    text = text.Substring(0, text.Length - 4);
            }
            return text;
        }
    ]]>
</msxml:script>

bung this in your xslt (i stick it after the currentPage parameter) then change your stylesheet statement to (changes in bold and italic):

<xsl:stylesheet 
    version="1.0" 
    xmlns:xsl="http://www.w3.org/1999/XSL/Transform" 
    xmlns:msxml="urn:schemas-microsoft-com:xslt"
    xmlns:umbraco.library="urn:umbraco.library" xmlns:Exslt.ExsltCommon="urn:Exslt.ExsltCommon" xmlns:Exslt.ExsltDatesAndTimes="urn:Exslt.ExsltDatesAndTimes" xmlns:Exslt.ExsltMath="urn:Exslt.ExsltMath" xmlns:Exslt.ExsltRegularExpressions="urn:Exslt.ExsltRegularExpressions" xmlns:Exslt.ExsltStrings="urn:Exslt.ExsltStrings" xmlns:Exslt.ExsltSets="urn:Exslt.ExsltSets" 
    xmlns:pageScript="urn:pageScript"
    exclude-result-prefixes="pageScript msxml umbraco.library Exslt.ExsltCommon Exslt.ExsltDatesAndTimes Exslt.ExsltMath Exslt.ExsltRegularExpressions Exslt.ExsltStrings Exslt.ExsltSets">

and you can then replace your calls to umbraco.library:RemoveFirstParagraphTag with pageScript:RemoveFirstParagraphTag

Obviously, when Umbraco is fixed, you can undo all the above to get rid of the .net compiler from the equation.