I am using Microsoft Word 2003 to write a book and using the bookfold feature
along with "page setup" however, there is too much space between the
paragraphs as well as too much space between the conversations. As an
example:

"How did you find the Microsoft Discussion Group?"
too much space here
"I found it by doing a search."

There is too much space between the above two quotes and I can't seem to
find a way to reduce it. I am using "enter" to create the space. I would
like this space to be about half of what "enter" produces.