Brief: With the WordPress upgrade to version 3.2, the text editor seems to remove the line break by itself. While typing text into the text editor, the formatting is in place and all line breaks are shown in the preview also. However, all the paragraph and line break tags seem to disappear when the text is saved and you go and view the page.
Assets: WordPress simply strips out the relevant tags whenever you add extra spacing in the text editor. The result is that the properly formatted text page you created looks totally different when you save it since all extra spacing or blank lines are removed.