To delete blank lines you can use a regular expression Replace as follows:
Find What: ^p$
Replace With: (literally nothing)
This will cause a hard return immediately followed by the beginning of a line to be replaced with nothing, effectively deleting them. For more detailed information and other options, please see the power tip here: http://www.ultraedit.com/support/tutorials_power_tips/ultraedit/remove_blank_lines.html