Another strange thing happened when I upgraded from MS Office 2003 to 2007. When I compose an email, paragraph marks show up all over the page. I find them very distracting and not particularly useful. (I used to use them back when WordPerfect was the dominant word processor, but that was because it sometimes helped to “reveal codes” in WordPerfect if the formatting of the page was going screwy — which it often did.)
Anyway, to get rid of these codes, open a new message and click on the Office orb (the circular thingy at the top left of the page that used to be the “File” menu). Click on the “Editor Options” button on the bottom right. Click on “Display”. From there you should be able to toggle the paragraph marker settings off.