Ok, I am trying to figure out what is different.  I have 2 data grids, each bound to BindingLists.  The only real difference between the two is that one uses the default value for  FieldLayoutSettings.AutoArrangeCells and the other has it set to Never because it does some items on different rows. It does not matter if the text field spans columsn, rows, or has no spanning whatsoever.

Here is the code that I use to set the editior so tha it wraps text.  The both use the identical code:

            Field.Settings.EditorType = typeof(Infragistics.Windows.Editors.XamTextEditor);
            Setter setter = new Setter(XamTextEditor.TextWrappingProperty, TextWrapping.Wrap);
            Style style = new Style(typeof(XamTextEditor));
            style.Setters.Add(setter);
            setter = new Setter(XamTextEditor.VerticalAlignmentProperty, VerticalAlignment.Stretch);
            style.Setters.Add(setter);
            setter = new Setter(XamTextEditor.VerticalContentAlignmentProperty, VerticalAlignment.Stretch);
            style.Setters.Add(setter);
            Field.Settings.EditorStyle = style;

  Any ideas?