Does text formatting such as char(10) work with MS Word 2007 Doc from Template? I have a text with several line breaks and it works fine in Appian but the output of the document has everything in one line.
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No. Word only cares about the XML code in the underlying XML file; you can actually insert char(10) characters in the text you insert into the document, and if you open document.xml in a text editor you will see them - but Word disregards these while rendering the document for display as they aren't XML.