I had this problem on my reports. I have about 20 memo fields on a report and I would frequently get blank space at the bottom of a page or a blank page(s) in the middle of the report. After many days working with this, I had to setup about 20 data groupings on dbname('recno') and place one field in the header of each data grouping. I could NOT place any fields in the data grouping footers as it would truncate the data in that field if it spanned to the next page. I know it is a hassle, but doing this made my reports very tightly aligned and it got rid of all the blank space and random blank pages.
You may want to give it a try in an experiemental mode.
Good luck and let me know how it works.
Regards,
Brian Hiatt
www.collectorpro.com