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I am using Excel 2010 btw.

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Actually, if you enter some text in CELL B1 then text it will appear as you expected.

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I see that but would it be possible even if you don't enter a value in cell B1? – IMB Jan 25 '12 at 16:35
Note that just entering a space or other non-printing character in B1 is good enough to stop the overflow. – user49214 Jan 25 '12 at 17:42

It's a bit of a hack, but one workaround is to set the cell to wrap. Excel may then increase the row's height, to allow for the extra lines, but if it does you can easily change it back again.

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