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Cell contents have extra padding as in MS Word

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I had to reinstall Office 2007 after Win10 hosed my HDD. For some reason, in Excel 2007 the cell contents all have leading and following spacing  as you can set in Word for paragraphs. The cell content alignment is set to bottom. Normally, row height for Arial 12 pt. is around 12.5.  For some reason it's 27  and setting the row height to 12.5 causes the text to pretty much disappear.  How can this be corrected?

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