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If you double space (hit the return key twice), then type the inside address, there will be one blank line between the date and the inside address. One blank line is the appropriate space.
The date of a business letter stands by itself. If the senders address is typed on the page, the date is one blank line below it and one blank line above the address of the recipient.
Yes, the paragraphs should have one blank line between them. This is especially important when using the block form of letter that has no indent at the beginning of the paragraph.
There is no strict rule for spacing for business letters. The standard is single spacing with a blank line separating each part (date, address, greeting, paragraphs, etc.) of the letter. Some legal organizations prefer double spaced letters the same as for legal documents.
The address line must have between 8-30 letters/numbers/symbols.