Saying more by saying less

I've been writing a story for a while now and I'm having a minor problem with it. I want to make it short, while still having the same impact as, say, a 500 page novel, but I've got that covered. This is a rather pointless topic but I just wanted to ask, when typing it our on Word, do you put spaces between dialogue or paragraphs?

EDIT: I forgot to ask my other questions, how silly of me. I'd like some advice on how I could cut down on the number of words in my writing while achieving the same effect as something three times its size. Your advice is much appreciated

Example:

'That wasn't funny!' Desmon snapped.
'I disagree, it was rather amusing.' Mara said.

OR:

'That wasn't funny!' Desmond snapped.

'I disagree, it was rather amusing.' Mara said.


Example 2:


Pulling down the crimson scarf to reveal his scarred face, Durial grinned. He wanted the man to see his face, just so he could have something to think about while the life slowly left his body. Durial sheathed his Kris and reached out to the man’s neck, pressing cold fingers against his sweaty skin. He twisted the tribesman’s head in one swift movement, snapping his spine like a twig in such a way that it would leave them conscious, unable to move or scream for help.
The man was tossed into the pit, as limp as the bodies around him. Durial and his companions quickly left the area, determined to complete their mission. The pirate Jolts had already gotten away and they could not accept another failure.


OR:


Pulling down the crimson scarf to reveal his scarred face, Durial grinned. He wanted the man to see his face, just so he could have something to think about while the life slowly left his body. Durial sheathed his Kris and reached out to the man’s neck, pressing cold fingers against his sweaty skin. He twisted the tribesman’s head in one swift movement, snapping his spine like a twig in such a way that it would leave them conscious, unable to move or scream for help.

The man was tossed into the pit, as limp as the bodies around him. Durial and his companions quickly left the area, determined to complete their mission. The pirate Jolts had already gotten away and they could not accept another failure.



I'm just wondering, so please don't berate me, I'm sitll a n00b to writing

The second format is good for web while the other one is good for novel writing. Except each beginning of the paragraph are indented. Just press the tab button.

Ah ok thanks for clearing it up

I usually use the second when writing dialogue and the first when writing normally. I dunno, that might just be me.

Use the first, with indents, when sending something in for publication.

Use the second when posting online, where indentations are automatically removed.

: ( I thought you were talking about the writing itself. Here it is, in case you're curious.

Durial grinned, pulling down the crimson scarf to reveal his scarred face[s], Durial grinned[/s]. He wanted the man to see his face before he died.[s], just so he could have something to think about while he died.[/s] Durial sheathed his Kris and reached out to the man’s neck. He twisted [s]the man’s [/s] his head in one swift movement, snapping his spine like a twig. [s]It was a flawless tactic taught to him by his many tutors.[/s] It would fracture the victim’s spine, but would leave them conscious, unable to move or scream for help.

The man was tossed into the pit, as limp as the bodies around him. Durial and his companions quickly [s]left the area[/s] walked away, determined to complete their mission. [s]The pirate[/s] Jolts had already gotten away and they could not accept another failure.

I find the spaced version much easier to read, in my opinion.