Notebook Theme — Sidebar.php Spacing Problem

I am trying to customize an existing WordPress Blog Theme — Notebook

This is what I have so far.
http://www.blogviewsbyroz.com/index.php

PROBLEM:

In the *left sidebar* there are spacing issues.

We can’t figure out how to get the spacing even when adding a new *Category Link.*

Check out:

Test 2 and Test 3.

NOTICE: The spacing between items is NOT consistent to the rest of the column.

NEXT PROBLEM:

Under META, there is an EXTRA *line space.* We can’t find where the extra < li> < /li> is.

We see it in the source code, but NOT in the *sidebar.php* file.

Can someone please help!

Thanks.

Roz
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