Spacing

I would open that image in your favorite windows program, I use photoshop, and crop the image right above the text and images, save that. Reopen your first image, and paste that into there. Use the transparency tool on whats left over, crop a little off, and youre done.

In other words, if you want help with style questions, provide a link to the site. No-one can help you with a freaking image.

Youre an IT person and you couldnt gather that?

Look in your stylesheet for the .post_content class and remove the top padding from it. Then look of the .post_title class and remove the bottom padding from it.