As it turns out that end of the line characters can be formatted differently for different systems; i.e. Unix (Line Feed), Windows (Control Break & Line Feed), Mac (Control Break). My Dreamweaver setup was formatting the files with a Windows line end character while the files were from Unix thus adding the extra line.
So to remove the double spaces I set: Dreamweaver>>Edit>>Preferences>>Code Format>>Line Break Type to "LF (Unix)" ... problem solved!
P.S. I also learned during that in Dreamweaver you can use Shift>Enter to create a single line (
) instead of Enter which creates a double line (
).