when i view your site using firebug for firefox, this is the code for an item:
HTML Code:
<img height="120" width="120" class="listingProductImage" title=" Blk/Brwn Blackberry Tartan " alt="Blk/Brwn Blackberry Tartan" src="images/blkbrwnblackberrytartan.png"/></a><br/>$4.00<br/><br/><a href="http://www.pawglamour.com/index.php?main_page=product_info&cPath=2&products_id=1&zenid=fabb823416146c0f6e2b167ea87b46e6"/><br/><br/><br/><h3 class="itemTitle"><a href="http://www.pawglamour.com/index.php?main_page=product_info&cPath=2&products_id=1&zenid=fabb823416146c0f6e2b167ea87b46e6">Blk/Brwn Blackberry Tartan</a></h3><div class="listingDescription"/></div>
notice the <br>'s (line breaks) after the price and before the h3 item title. these are causing the spacing. take a look in includes/modules/YOUR_TEMPLATE/product_listing.php.. you should see some extra <br /> in between the image and the price..
ps - if you haven't already, read up on firebug. it's an add-on for Mozilla Firefox that allows you to view and edit code on-the-fly.. great for tracking down things like this.
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