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I noticed that, when I activate the Form Paragraph macro, the entire newly formed paragraph takes the format of the first selected word. How can I preserve the italics of a title, for instance, if there is one in the paragraph I am trying to form?

One quick thing to check: are you using the old Form Paragraphs macro that was distributed with Nisus Writer Express? That macro indeed had that undesirable behavior. The new/current macro would be the one on the menu Macro > Changing Text > Form Paragraph

If you're using the current macro, the problem may be that you have different paragraph styles applied to the bits of text you are combining into a single paragraph. As you may know, only a single paragraph style can be applied to a paragraph. So if you form a paragraph out of two paragraphs, one with a "Heading" style applied, and another with "Normal", then Nisus Writer must choose only one of these styles to use for the entire paragraph you just formed. That can result in a formatting change.

I indeed was using the old macro inherited from Express. I discarded it and replaced it with the .nwm one. Thanks.