Speaking for version 9, probably the same in X3, just have not tried it there.
There are two justify controls, one is force justify which is what you probably used. It will space a one word last line across the paragraph. There is also a normal justify which does not justify a line with a carriage return.
As for the line height, it is quirky even with spaces in it. Sometimes it works, sometimes not. Type in an x or something, set it for no fill and no outline. Then you can change its size and it will take.
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