I'm not having that problem. I know where in a regular html page there should be a line break and carriage return after a <p> and there's only a line break with flash html text but I haven't seen your problem. I'm uploading a zip that has a fla, a text and css file where I do the stuff you're talking about but the same problems don't happen. If the upload works that is.
You can't do inline styles like you're trying to do in htmlText.