Hi Gurru,
I really like your implementation of the template. There aren't many changes, but its use of modules and general content is really nice - Good work! You should submit it in the site showcase board..
As for the spacing issue:
in you templates customise.css (around line 506) change this:
.contentheading,
.blog .contentheading,
.contentpane .contentheading {
font-size:1.6em;
font-weight:bold;
padding:0.5em 0pt;
text-align:left;
}
to this (ie, remove the padding):
.contentheading,
.blog .contentheading,
.contentpane .contentheading {
font-size:1.6em;
font-weight:bold;
text-align:left;
}
and then around line 411, remove the line of padding from the below:
td.createdate {
background:transparent url(../images/createdate.png) no-repeat scroll 0pt 50%;
color:#CCCCCC;
font-size:0.9em;
margin-bottom:1px;
padding:6px 0pt 6px 20px;
}
That should sort it

Cheers,
Chris