Here's how to fix the "double-space" problem caused by e.g. pasting from the Web or SSMS or other color coder source.
Simply paste into the Outlook HTML body; reselect it; change to bulleted list; turn off the bulleted list. That's it!
This
SET ANSI_NULLS ON
GO
SET QUOTED_IDENTIFIER OFF
GO
becomes
SET ANSI_NULLS ON
GO
SET QUOTED_IDENTIFIER OFF
GO
As a bonus to remove most of the other formatting, highlight it; press Ctrl-Space.
Becomes:
SET ANSI_NULLS ON
GO
SET QUOTED_IDENTIFIER OFF
GO
Presto magic.