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I remember this theme, it was one of the first ones I used about a year ago. I had great difficulty with this at the time, and it's been so long now that I can't remember what I did to it because I ended up heavily modifying the theme till it was a fork of Gold.
Anyway, A theme is just a bunch of html tables that us .css for certain elements. Forunately, your in luck in that you don't have to modify the .css
Open up the theme html file and look at the tables. There is an issue with one of the tables that causes this little extra bit of annoying space to be added. Some trial and error with the table formating will fix it.
I only wish I remembered what it was I fixed. I still have my modified files, I'm a file pack-rat and delete nothing if I can help it. Let me know if you want it and I'll repackage and provide a link for you for comparison purposes, or if you just want to use it for yourself.
