Interesting... I get the opposite behavior. When I initially create the skin by dragging TFS fields from the canvas into a formatted paragraph, it looks great. After saving the skin, running a query, and extracting data into the formatted paragraph, that's when I lose the formatting on the extracted content. This seems to apply particularly to character formatting. Basic paragraph formatting works OK - bullets, numbering, indenting, tabs, and overall font are all applied to extracted content. It works best if the paragraph attributes are put into a named style (just my perception - not the result of rigorous examination).
Has anyone gotten formatting to work really well using the trial? Is the trial "fully functional"?