Quote Originally Posted by Rowan
Is the problem to do with the category links being spread apart vertically?

If that's the problem, then it's caused by "display:block" which automatically forces inline elements (links for example) to take up the whole line. When this happens, a line break between two links will add a new gap between them.

To fix this, you need to open 'tpl_categories' in your 'templates/sideboxes' folder and delete all instances of "<br />", don't remove the surrounding ' ' apostrophes though.
Yes! That was it! You are a beautiful person. Thank you so very much!