SOLVED

the problem was being caused by "text-align: justify" in the css

I am using Adrena Theme from inkthemes.
When i put text in one of the 'featured' areas it generates extra spacing that should not be there.
i have copied this text into a plain text doc, then copied to the site, i have manually typed the text, all with the same result.
i have tried reinstalling wordpress, reinstalling the theme, copying the theme and database form another site, individually and together, and probably a few other last ditch efforts i cant remember right now.

the really strange part is that when i copy/paste the default Lorem Ipsum the theme generates, its normal.
but copy/paste anything else and i end up with odd spacing (even a random news article from MSN)

I have another site using this same theme and do not have a problem.
Yes, the two sites are on different servers, so its not really a great test or example.

the site and server having the problem are running the latest versions of PHP, MySQL, and Wordpress 3.5.1. All plugins are up to date. Everything is up to date.

ANy ideas why this might be happening?

wordpress installation is located at integratedliving.org/wp