KATE and Kwrite are inserting 2 blank lines randomly into text

For some reason, KATE and Advanced Editor are inserting line breaks into 
random places.

For example, if the text is supposed to be like this:

Bob is
a big
fish eater

KATE and Kwrite will insert 2 blank lines randomly like such

Bob is
a big


fish eater

I have the end of line set to UNIX.  If I remove the two blank lines, save and 
restart KATE, they are back again.  Its EXTREMELY fustrating!  Those 2 blank 
lines are inserted randomly into text.  I cannot find a logical reason for 
this.  Is this a bug with KATE or something?  I have KATE 2.0 with KDE 3.0.2