outlook 2007 and white space

Since Outlook 2007 uses the MS Word engine for email rendering, does that mean that it sees 'whitespace' just as a text editor and/or text only email client does too? For ex: a space is an actual space, a return is seen as an actual carriage return, etc.??

200,000 companies around the world can't be wrong.

From Australia to Zimbabwe, and everywhere in between, companies count on 
Campaign Monitor for email campaigns that drive real business results.

Get started for free