Open Templates/base/css/general.css & remove 3 instances of the attribute - margin:0px; - that are associated with the P tag. Also, if you have a custom template, you will need to make the same change in that templates general.css file. If you do it this way, it will take care of the paragraph issue in blogs, news, comments and articles as well.

Make backups. This worked perfectly for me but I'm a moron when it comes to php.