Upfront adds unwanted space above - or below - elements

I get the spacing between elements exactly as I want in the Upfront editor but no matter what I do - adjusting the size of the regions, disabling using theme padding, adjusting css padding, using the remove-space option etc. - on the actual site there is a large added space between the elements - this can be seen at http://tonyrockliff.com/internet-marketing/ above the image.

How can I get rid of that space?

regards, Tony