I don't have a HP-UX box to test but try any of the following:
Code:
# delete all CONSECUTIVE blank lines from file except the first; also
# deletes all blank lines from top and end of file (emulates "cat -s")
sed '/./,/^$/!d' # method 1, allows 0 blanks at top, 1 at EOF
sed '/^$/N;/\n$/D' # method 2, allows 1 blank at top, 0 at EOF
# delete all CONSECUTIVE blank lines from file except the first 2:
sed '/^$/N;/\n$/N;//D'