It seems as if you have to change the Line Spacing and Spacing Before/After for the style. Something like this:
Code:
With PwrdPasteDoc.Styles("Normal")
.Font.Size = 10
.Font.Name = "Arial"
.ParagraphFormat.LineSpacingRule = 0 'single line spacing
.ParagraphFormat.SpaceBefore = 0
.ParagraphFormat.SpaceAfter = 0
End With