I searched high and low for the answer to this question and I finally found your post which got me on the right track to fixing this problem. The funny thing is most people actually deny that the problem actually exists which is absolutely incorrect. The page that you supplied does not tell you how to fix the problem but in fact it gives you a valuable clue to fixing the problem, shows that what needs to be used is the setRules variable. There are four things that I did to fix the problem.
This is what you need to do to get rid of the whitespace and return after the <p> (paragraph) tag.
In the file ckeditor.js.
Go to line number 122. This is a very long line as are most lines in this file. Look for or search for "n.setRules" (without the quotes). Following that there is a list of items, indent, breakBeforeOpen, breakAfterOpen, breakBeforeClose, and breakAfterClose. Change or make sure indent and breakAfterOpen are set to false.
Still in line number 122. After n.setRules('br',{breakAfterOpen:false}); add n.setRules('p',{breakAfterOpen:false});
Now go to line number 257. This line is very similar to line 122 and is very long as well. Look for or search for "n.setRules" (without the quotes) again. Following that there is a list of items once again, indent, breakBeforeOpen, breakAfterOpen, breakBeforeClose, and breakAfterClose. Change or make sure indent and breakAfterOpen are set to false.
Still in line number 257. After n.setRules('br',{breakAfterOpen:false}); add n.setRules('p',{breakAfterOpen:false}); again.
That is it! Check the editor and you should no longer have extra space when you hit return (Enter). Hope this helps.
Re: Spaces after Paragraph tag,I read the docs, still need h
This is what you need to do to get rid of the whitespace and return after the <p> (paragraph) tag.
In the file ckeditor.js.
Go to line number 122. This is a very long line as are most lines in this file. Look for or search for "n.setRules" (without the quotes). Following that there is a list of items, indent, breakBeforeOpen, breakAfterOpen, breakBeforeClose, and breakAfterClose. Change or make sure indent and breakAfterOpen are set to false.
Still in line number 122. After n.setRules('br',{breakAfterOpen:false}); add n.setRules('p',{breakAfterOpen:false});
Now go to line number 257. This line is very similar to line 122 and is very long as well. Look for or search for "n.setRules" (without the quotes) again. Following that there is a list of items once again, indent, breakBeforeOpen, breakAfterOpen, breakBeforeClose, and breakAfterClose. Change or make sure indent and breakAfterOpen are set to false.
Still in line number 257. After n.setRules('br',{breakAfterOpen:false}); add n.setRules('p',{breakAfterOpen:false}); again.
That is it! Check the editor and you should no longer have extra space when you hit return (Enter). Hope this helps.