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Sound's like you just want better word-wrap in the HTML compose mode?
-Because if you actually 'broke' the line -ie like hitting enter, it would show up different in everyone else's mail clients; like a new paragraph, etc.
What zcs version & web-browser are you running?
Because with the exception of long strings that I paste (as apposed to typing an email with spaces) it generally works ok on firefox 2.0.06 & IE7 w/ 4.5.6