I have just tried it in 10, and it works with both Caps+Eneter and Shift+Enter (I prefer the latter).
Hopefully it is not a bug/feature, but corrupted preferences.
In order to restore the preferences, you may either Ctrl/Cmd+Alt/Option at startup, or Move the folder with Illy closed. The latter is reversible and takes care or more issues, but requires a greater effort, especially the first time used. See explanations in the latter
Reinstalling does not replace the preferences.
I'm not seeing the issue in CS4, so I would agree that it is probably a problem with the prefs or the specific font you are using.
Thanks for clarifying what I see as a bug, Zimmerman. This behavior occurs in Illustrator CS4 Spanish, on Mac OS X 10.5.4 thru 10.5.8, with every single font I use, and before and after resetting preferences.
Tested in 9 different systems and counting...
The problem here is, IMO, that the method used to read the text string seems to analyze the string too thoroughly and forces the code to make too many decisions which it cannot do all at once or at least in a stable or fast enough way. So it simple does what it has to do to be responsive and ignores that chore.
Where as if it just did not analyze a text stream as it already knows it is a text stream and just look for the issues being asked then it could perform the task easier and faster and also actually accomplished what it set out to do int he first place.
I think eventually as multiple artboards become more popular they will have no choice but rethink think the need for a more powerful text feature in Illustrator.
Sorry there is no solution to this annoying bug.
IMO, this is a bug. But since it's been there since at least CS1 and is still present in CS5, I guess that's how Adobe thinks it should work. Although it is inconsistent with the way InDesign works.
A hard return describes a paragraph break and all the paragraph rules (last line alignment, space after,...) should be respected. A soft return, on the other hand, should only push the word down to the next line. But justification should be respected.
It's a bug. AI doesn't honor soft returns with justification.
I've reported it a couple times.
Scott, the email notification of your reply said "It was fixed in AICS5" but was edited since.
Was that just wishful thinking? I have CS5 and the bug is still there.
It's not fixed in CS5. Auto fill did some weird stuff with my initial reply and I had to correct it.
Bug has been present since at least CS3, if not earlier, and is still not fixed.