Not a bug, but you have to display blocks right next to eachother
%%%CONDITIONALTEXT1%%%
%%%CONDITIONALTEXT2%%%
%%%CONDITIONALTEXT3%%%
If only #2 displays, then there will still be a space for #1 and #3. You need to bunch them all up.
I agree. in this case, I encourage you to switch to HTML View -- click the SOURCE button on the textbox.
It is my hope that the new version will be easier and less disorganized.