Wow. This is a crazy mystery. If you feel comfortable sharing it with me personaly, you can email me a link to download the file. I’m at David @ CreativePro.com (I’ll delete the file after investigating, of course.)

In the Table of Contents dialog box, do you have the “Run-in” checkbox selected, by any chance?

Whoa. Hm. Can you try choosing Type > Show Hidden Characters and see if anything is visible there.
And just to be sure: you ran Layout > Table of Contents to create this?

That sounds pretty weird. I can’t think of what would be going on. While you can’t upload images here, you can put the image somewhere (like dropbox or Imgur and then put a link to it here)