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The Report Builder report looks correct when I run it in the desktop. But when I publish it to the service and view it there the column header row and details rows grow about 15 rows taller. I clicked each text box and set it not to allow the height to increase. No effect.
In the image you can see how the header row generates about 15 rows worth of blank spaces between the text and the bottom border. The same thing is happening with each row.
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