If you have not already seen this take a look at the block design tool with Deanos Block tool.
http://www.boonex.com/m/Block_Tools
You can customize the Blocks to have no padding example your blocks presently have block design 1, if you go to block design 0 then the box border goes away and that moves the text closer together. It is good for some blocks but not others. I attached a pic of my Home page. Notice the search has no borders or design block 0, top banner is normal design block 1 or it would be too close. The vertical tower advertisement is a design block 100 no borders but a title. Now you may not have all these design boxes in your system some come with other paid modules, there are more design blocks then these three and if you have say a expanding bottom on your timeline then you could lose that by changing the design block number by using a different design block then what the developer used. Its an option though.
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