edit the code i gave you
change this bit
Code:
<FORM action="home.php" method=GET name=sl_form>
<SELECT name=sl onChange="javascript: document.sl_form.submit()">
{section name=ai loop=$all_languages}
<OPTION value="{$all_languages[ai].code}"{if $store_language eq $all_languages[ai].code} selected{/if}>{$all_languages[ai].language}</OPTION>
{/section}
</SELECT>
</FORM>
to
Code:
<table>
<tr>
<FORM action="home.php" method=GET name=sl_form>
<td>
<SELECT name=sl onChange="javascript: document.sl_form.submit()">
{section name=ai loop=$all_languages}
<OPTION value="{$all_languages[ai].code}"{if $store_language eq $all_languages[ai].code} selected{/if}>{$all_languages[ai].language}</OPTION>
{/section}
</SELECT>
</td>
</FORM>
</tr>
</table>
basically tuck the form tags inside the table row tags otherwise it gives the balnk space as you mentioned