the thing is, the editor shouldn't add extra tags, the question here is not how do I use a line break vs a paragraph, or how do I edit my Paragraph spacing using CSS, rather, how do I stop the editor from wrapping the contents of any content entered (images or text) with a <P> tag. 

Is there any way that we can stop the editor from doing this?  (as it IS very annoying, especially when you're working in a design where you don't allow for space between modules/announcements etc and you're constantly having to edit the HTML to remove these P tags)

Cheers, Reuben.

Well, then MSword must do the same, all other editor must do the same and then the standard way to edit content will become obsolete and the time spend to get to that standard will became lost time.

You must try to not confuse your own needs with most people needs.

The real thing is that the correct way to enter content is by creating paragraphs and the way to do that in html is by using the P tag. This editor has an option to not use the default behavior by changing it to BR. Maybe this is what you are looking for.

If you read this thread from the beginning you will find that the solution was posted. It is by editing the custom/fckconfig.js and to change the entermode property.