I found this on that super awesome blog I spoke about and I pretty much followed what she said and formatted my third draft accordingly.
So here is her post, for new writers this is a really easy thing to follow to make your manuscript better.
Here are some things to pay special attention to:
• Do set your preferences to incorporate the items below so all your documents will have the same foundation, and if you copy and paste from one to the other you won’t bring any odd formatting or weird fonts with you.
• Make sure the left and right margins are an inch and a quarter.
• Don’t tab in when you start a new paragraph; instead, set the ruler to indent for you.
• Don’t insert returns to move to the next page (say, at the end of a chapter); instead, insert a page break.
• Don’t insert space (returns or otherwise) to bring the beginning of your chapter halfway down the page. The typesetter will take care of that later. We’re editing now, not prettifying.
• Don’t tab in to center a headline; select it and choose center on the toolbar.
• Don’t tab in to create a text block (of quoted material, for example); instead select the text and reset the margins.
• Do not insert a return (a line of space) after every paragraph; this is a manuscript, not a business letter.
• Do not add space before or after a paragraph (using the alignment/spacing tool); the space between lines should be equal.
• Do use double spacing.
• Don’t justify the text; use flush left.
• Don’t use the automatic footnote function, which creates a link between the number and the note; create a separate document with the notes in it. Do use superscript to place the footnotes in the proper place. (OK, it’s fine to use the automatic footnotes if this is your doctoral thesis, or any other paper for school. Or for something you’re going to print at Kinko’s. It isnot fine for a manuscript that will be professionally typeset.)*
• Don’t automate the bullet point list; you can do it yourself, honest. 🙂
• Do not put a box around a line you want to use as a call-out; in fact, don’t put a box around anything. Ever.
• Don’t insert photos or graphics. Note where they should go within the manuscript, but send me the graphic files separately. Remember they should be high resolution.
• Don’t spend time formatting anything, honestly, beyond bold and italics. No fancy fonts, please.
• Do not send me two dozen different documents, one for each chapter; that is just asking for trouble. Combine the whole manuscript into one document.
• Just use Times New Roman.