Actually I'm just avoiding the ctl-k ctl-d reformatting except when I
first create a page.  To reproduce simple enter

<table>
    <tr>
        <td>
            Indented stuff
        </td>
        <td>inline stuff</td>
    </tr>
</table>

When you do ^K^D I haven't found any setting which will allow both of
the TD sets to remain as they are, one or the other will change.

However, I've found that if I use asp:Table tags instead of html tags,
it renders the TD tags without any spaces or line breaks before or
after, so that solves the problem.  They're considerable more verbose
than html, and they want an ID on every table for some weird reason,
but I can indent them all the time and not have extra spaces pushed
into the layout.

Well, almost.  I have a fairly complicated layout that renders fine on
Firefox and Opera, but IE still shows with little gaps at the top of
the page and major misalignment at the bottom, but as I haven't
figured out why yet that may be unrelated.