Guest Post by Richard
I have done some testing and research and may have discovered why some are still experiencing some issues with paragraph formatting in the new WordPress.com editor and posted my findings on my blog. It is mainly due to the way the editor was designed to work, and by following my suggestions, I think you will find that things will go much better for you.
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Still the best advice I can offer to people struggling with the Rich text editor is to turn the damned thing off.
You still get all the functionality of the RCE but without the cock-ups that it causes with image insertion.
I’m surprised to see you answering questions on the forum. And, if that’s your best advice then please share it with the bloggers posting there. :)