Hi ArlyDude
The offending piece of code is in the single/home.tpl template:
<table border=0 width=100% cellpadding=0 cellspacing=0 align="center">
<tr>
<td class=TableLeft width=6 rowspan=2></td>
<td class=TableLeft width=150 valign=top>
{if $login eq "" }
If you remove this line the gap disappears.
Funkydunk