Hi Cara,
The pilcrow (¶) on the toolbar is for toggling the formatting mark display on/off. The underlying settings for what that toggling affects are whatever you've checked under Tools|Options|View > Formatting marks. If you uncheck, say, spaces, tabs & optional hyphens, clicking on the pilcrow will toggle the display of these attributes on/off.
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Cheers,
Paul Edstein
[Fmr MS MVP - Word]
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