It is possible. I've posted a sample code below:
contact1->contact+(.if.contact1->company"".then.contact1->company+sys->para_break)+(.if.contact1->title"".then.contact1->title+sys->para_break)+(.if.contact1->department"".then.contact1->department+sys->para_break)+&fulladdress
I also encourage you to read this document:
ftp://ftp.goldmine.com/Public/WinFiles/blankl.doc
It outlines the process and formulas for suppressing blank lines in word6, but it also works for more recent versions. If you have trouble accesing it I can email it to you as well.
Another possiblity is just doing a direct mail merge from Word using the contact1 files. It's ugly and you are hard presse to filter the data, but eliminating blank lines is easier there. I don't suggest it, but it is possible to do that as well.
Good Luck!
Michael Phipps
Technical Business Analyst
Mercy Health Plans