After typing a character name, regardless of whether I hit TAB to enter dialogue, or hit ENTER and select DIALOGUE from the dropdown, I get a full line of space between the character name and the dialogue.
Dialogue should begin on the line directly below the character name. I can mail you a screen shot if this doesn’t make sense.
Agreed, it looks like the “0 Space before” and “1 Space before” settings have identical formatting. I tried using the default setup and got an identical amount of space between the character and the scene heading as I did between the character and the dialogue. When I adjusted the script settings to add a space before the dialogue, I got the same result. Adjusting to add two spaces before, and the result was two spaces, not one—so the setting is working, it just isn’t properly reducing the space to zero.
Given that scriptwriting in general is still pretty work-in-progress, this is probably already on the list.