Which whitespace are you referring to? Screenshot?
Also to fix the height issue of the category list in your left column ...
Replace the following:
#categories ul{
padding:0;
margin:0;
list-style:none;
}
.category-top li{
padding:0;
margin:0;
background: #EEEEEE;
vertical-align:middle;
}
li.category-top a{
padding:.4em 0 .4em 1.5em;
margin:0;
color:#333333;
font-weight:bold;
display:block;
border-bottom:1px solid #9a9a9a;
background:#EEEEEE url(../images/boxlistbg.png) .4em 0.5em no-repeat;
}
li.category-products a{
padding:.4em 0 .4em 1.5em;
margin:0;
color:#333333;
font-weight:bold;
display:block;
border-bottom:1px solid #9a9a9a;
background:#EEEEEE url(../images/boxlistbg.png) 1.2em 0.5em no-repeat;
}
li.category-top a:hover{
background:#333333 url(../images/boxlistbg.png) .4em 0.5em no-repeat;
color:#EEEEEE;
}
li.category-products a:hover{
background:#333333 url(../images/boxlistbg.png) 1.2em 0.5em no-repeat;
color:#EEEEEE;
}
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