Why is it that potential novel writers bog themselves down with the
mechanics of the layout, when what should concern them is the story. Just
write it! Your publisher/printer will sort out the layout.
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Graham Mayor - Word MVP
Seriously, publishers want your submission in double spaced format. Keep it
simple and use the default Word font. Save your work to a CD, making sure
you do not encrypt it or use some kind of password protection on it. The
publisher will take care of the required formatting.