[kube]

Hi BodyBalance,

For the top gap, which is a little difficult as there a few things that can affect that area but hopefully this should do the trick, get your skin1/head.tpl and locate...

{if $main ne "fast_lane_checkout"}
<tr>
	<td colspan="2" valign="middle" height="32">
<table cellspacing="0" cellpadding="0" width="100%">
<tr>

and {* comment out *} the attributes valign="middle" & height="32" from the outer lying TD like so...

{if $main ne "fast_lane_checkout"}
<tr>
	<td colspan="2"{*** this is commented out ---> valign="middle" height="32"***}>
<table cellspacing="0" cellpadding="0" width="100%">
<tr>

then inside skin1/skin1.css find the class .PrintableRow and make a couple changes like so...

.PrintableRow {
	WIDTH: 100%;
	VERTICAL-ALIGN: middle;
	PADDING-RIGHT: 186px;
	HEIGHT: 32px; /* <--- change this to 32px */
	background-color:#00FF00; /* <--- and add this (colour green)*/
}

For the bottom gap locate skin1/rectangle_bottom.tpl and {* comment out *} the part which contains the ELSE statement with the IMG tag, like below...

{if $active_modules.Users_online ne ""}
<tr>
	<td>{include file="modules/Users_online/menu_users_online.tpl"}</td>
</tr>
{*** {else} <--- notice the comment begins before the else statement.
<tr>
	<td><img src="{$ImagesDir}/spacer.gif" class="Spc" alt="" />111</td>
</tr> ending comment after ending TR tag --> ***}
{/if}

Hope this helps.
Doms