Using Mail - Letter switches formatting

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When I look at the letter set up through Mail, through the mail merge wizard and tied to a letter code on each gift. The letter looks great. Formatted, spacing is right. Then we I merge all the letters - it changes the formatting and removes all line breaks into a complete mess. How do I fix this? Thoughts??  We run around 150-200 letters each day. This is a new letter for a new campaign. Thanks in advance!
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