hmmm, should work, it works for me using the steps you provide in word2003, EndnoteX4 with the Author, Date style.
What version and build of Endnote and Word, operating system and is the list footnotes, or a bibliography? I tried a variety of styles and they all seemed to work.
As a last resort yuo could edited the style inself to insert an extra line (or two) by putting a Paragraph break in the Bibliography layout “End each reference with:” box.
If I’m understanding correctly, you wish your bibliography to be double-spaced or add a space between each reference, right? If so, there is a much simpler way to alter the spacing in your bibliography than editing the style. Please see our Frequently Asked Questions page on how to get your bibliography to double-space or add a space between references here: