I've been working on my own Website and on a client's Website, and I'm having problems spacing paragraphs, as well as images.
The problem is more severe in Firefox than in Internet Explorer 7. I can successfully create and publish paragraph breaks using the WordPress WYSIWYG editor when using IE7 but not in Firefox. However, I can't do line spaces in either browser.
I've checked my stylesheet thoroughly for problems. I've even checked this in other client sites that never experienced this issue before, and it's now occurring in those sites.
Something in both 2.8.5 and 2.8.6 is preventing the use of line spaces and paragraph spaces.