Introduction to XML in Flash
       by senocular

Double-spacing Occurs With Text Nodes And/Or CDATA
When text is brought into Flash and displayed in a text field, whitespace from that text is retained allowing you to mainttain tabbing and line breaks. Depending on your operating system, line breaks may consist of one of the following:

Flash understands both \r and \n as line breaks. The problem comes with Windows line breaks which actually uses both \r and \n to represent one single line break. When this is brought into Flash, that single line break is interpreted as two.

To solve this problem, you can either replace all instances of either \r or \n from within Flash before the text is added to a text field or you can simply remove it beforehand (prefered) using a more advanced text editor - something other than notepad - which will let you distinguish between characters used for line breaks.