the space is caused by breaks <br> in you product_listing.php file
if you remove them it will display incorrectly
if you apply this to your .css file you will see what I am talking about
Code:
#productListing br {
display: none;
}
could replace the <br> with own div class
<div class"productListingPrice">
from there you can apply a rule in your css. file
Code:
.productListingPrice {line-height:15px;}
just a suggestion, someone else may have a better one that wouldn't involve ripping apart core files.
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