In Magento 1.4, the address format used in PDFs has changed. At this point I'm not sure if this is a deliberate or unintended change. It effects addresses such that they are all displayed on a single line. If you prefer the older, multi-line address display you will need override the formatting in your local.xml file, or with a module (don't be tempted to hack the Mage/Customer/etc/config.xml…).

Please note, within a <![CDATA block, spacing *is* important, hence the lack of indenting.

{{depend prefix}}{{var prefix}} {{/depend}}{{var firstname}} {{depend middlename}}{{var middlename}} {{/depend}}{{var lastname}}{{depend suffix}} {{var suffix}}{{/depend}}|
{{depend company}}{{var company}}|{{/depend}}
{{var street1}}|
{{depend street2}}{{var street2}}|{{/depend}}
{{depend street3}}{{var street3}}|{{/depend}}
{{depend street4}}{{var street4}}|{{/depend}}
{{depend city}}{{var city}},  {{/depend}} {{var region}} {{depend postcode}}{{var postcode}} {{/depend}}|
{{var country}}|
{{depend telephone}}T: {{var telephone}}{{/depend}}|
{{depend fax}}<br />F: {{var fax}}{{/depend}}|

The format may be slightly terse but hopefully you can see how it can be applied to create your own desired format.