(1st Problem)

Not sure if this will help, but try using this code. It places a blank
line in between each row.

Sub InsertRow_At_Change()
Dim i As Long
With Application
.Calculation = xlManual
.ScreenUpdating = False
End With
For i = Cells(Rows.Count, 1).End(xlUp).Row To 2 Step -1
If Cells(i - 1, 1) < Cells(i, 1) Then _
Cells(i, 1).Resize(1, 1).EntireRow.Insert
Next i
With Application
.Calculation = xlAutomatic
.ScreenUpdating = True
End With
End Sub


(2nd Problem)

Why not try formatting the cells and allow for text to merely wrap? As
more information is keyed the cell(s) can grow and vice versa.