I am creating a report with captions and equations that
have cross-references in the body of the text (i.e. the
words "Figure 1" hyperlink to the actual caption for
Figure 1.  

The problem is that after I save the document and re-open
it, Word has inserted multiple paragraph marks (i.e.
returns) before the cross-reference field (i.e. the
words "Figure 1" so that a large gap occurs in my document.

For example, the text body might say:

Word is a great application, especially when compared to
the old manual type-writer shown in Figure 1.  They were
very difficult to operate and not much fun.

After saving, it comes up as:

Word is a great application, especially when compared to
the old manual type-writer shown in
(return)
(return)
(return)
(return)
(return)
Figure 1.  They were very difficult to operate and not
much fun.

Any help would be appreciated.

Thanks,  Ginny