Got It...See below for instructions.
Ok so i found the place to edit tinymce if anyone wants to know...
Mail/Programs/JS/editor.js
To get rid of the line breaks while using tinymce add the code in red...
Theres also a cool right click context menu in tinymce, you can enable it by adding it to the pugins string also in red.
tinyMCE.init({
mode : 'textareas',
editor_selector : 'mce_editor',
accessibility_focus : false,
apply_source_formatting : true,
theme : 'advanced',
language : editor_lang,
plugins : 'paste,emotions,media,nonbreaking,[COLOR=Red]contextmenu,[/COLOR]table,searchreplace,visualchars,directionality' + (spellcheck ? ',spellchecker' : ''),
theme_advanced_buttons1 : 'bold,italic,underline,|,justifyleft,justifycenter,justifyright,justifyfull,|,bullist,numlist,outdent,indent,ltr,rtl,blockquote,|,forecolor,backcolor,fontselect,fontsizeselect',
theme_advanced_buttons2 : 'link,unlink,code,|,emotions,charmap,image,media,|,search' + (spellcheck ? ',spellchecker' : '') + ',undo,redo',
theme_advanced_buttons3 : '',
theme_advanced_toolbar_location : 'top',
theme_advanced_toolbar_align : 'left',
extended_valid_elements : 'font[face|size|color|style],span[id|class|align|style]',
content_css : skin_path + '/editor_content.css',
external_image_list_url : 'program/js/editor_images.js',
spellchecker_languages : (rcmail.env.spellcheck_langs ? rcmail.env.spellcheck_langs : 'Dansk=da,Deutsch=de,+English=en,Espanol=es,Francais=fr,Italiano=it,Nederlands=nl,Polski=pl,Portugues=pt,Suomi=fi,Svenska=sv'),
spellchecker_rpc_url : '?_task=utils&_action=spell&tiny=1',
gecko_spellcheck : true,
relative_urls : false,
remove_script_host : false,
[COLOR=Red][I] force_br_newlines : true, //Added to BR lines tinymce
force_p_newlines : false, //Added to BR linee timymce
forced_root_block : false, //Added to BR lines tinymce [/I] [/COLOR]
rc_client : rcmail,
oninit : 'rcmail_editor_callback'
});
I tried that for a while on a test install, but it caused more small issues than it was worth. As I recall, there were signature format errors in IE, and maybe other problems with the top-post/bottom-post composing in some browsers. In any case, I do recall that the behavior was not consistent among different browsers. I went back to the default for my production instance. I figure that there's a reason that TinyMCE warns against using those settings.
I upgraded the tinymce to the latest version i don't know if that makes any diffrence...it just seems like a stupid setup on tinymce's part weird stuff....well if i get anything weird with new tinymce version i will post.