Space not showing between widgets in sidebar

Hello experts! So I lost my database and am now trying to reconstuct my theme. My sidebar used to look like this:

http://i658.photobucket.com/albums/uu310/morality28/logged_in.png

and now it looks like this:

http://i658.photobucket.com/albums/uu310/morality28/sidebar-help-2.jpg

All 3 of the widgets are in the same widget area, so I don’t understand why there is space between the 2nd and 3rd widget but no space between the 1st and 2nd widgets.
I don’t remember what plugin I was using in the first widget to display posts excerpts from a single category but I’m using YD Recent Posts right now and can’t change the inside margins or font size.

I’d really appreciate some help!

Here’s the site as it is now:
http://www.maycourtstcatharines.ca