One suggestion - are you using the "Word" button to paste your Word text into the editor? If so, make your original Word document single-spaced and don't add in an extra line yourself between the paragraphs. It should post it in correctly. At least it does for me.
Not sure if this is your situation or not, but I thought I'd throw it out there.
Also, about the not being able to go to the code editor, sometimes that's a browser issue. You might try closing it out and opening it up again. Or you might try a different browser. I think it has something to do with scripting in the browswer (not sure though - others will know better).