The product listing table is output by /includes/templates/your_template/common/tpl_tabular_display.php.
You would need to edit this line to put space between cells:
PHP Code:
<table width="100%" border="0" cellspacing="0" cellpadding="0" id="<?php echo 'cat' . $cPath . 'Table'; ?>" class="tabTable">
I've never really used tables for layout, so am not sure how to get vertical spacing but not horizontal spacing... you should be able to look that up in an HTML tutorial.
HTML table elements are not subject to the CSS margin property, so you need to edit the table code.
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