Space between links

you can influence the space here in style.css:

#sidebar ul li {
	list-style-type: none;
	list-style-image: none;
	margin-bottom: 15px;
 	line-height: 1.7;
	}

this may influence space between other sidebar elements as well.
if you want to be more specific – just for the link list, add this to the style.css:

#sidebar ul.blogroll li {
	list-style-type: none;
	list-style-image: none;
	margin-bottom: 0px;
 	line-height: 1.7;
	}

the number in margin influences the space. 😉