What am I doing wrong here?

I'm a Zotero noob, and I'm definitely not a developer, so I'm using Z "out-of-the-box" without having done any configuration acrobatics. Everything works fine with creating new bibliographies in APA format to the clipboard- my problem starts when I go to paste into Word 2003 (with the Zotero plugin properly installed, it assures me).
Why does the data pasted not follow the paragraph formatting of the document it's being pasted into? My references get pasted into my otherwise-double-spaced document SINGLE-spaced, and when this happens, all the references above the current one placed with Zotero ALSO revert to single spacing!

Is this just something I haven't configured correctly or is it a bug? It's more annoying than anything else, but it would be nice to fix it!
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