Exactly what I was going to ask. The styles manager works as expected. :)

*points to the attachment*
You were saying?

I thought you were talking about the Style Manager having all the blanks... I can live with a blank after an expanded group, that looks good as it seperates it from the next one.

Um you might wanna ahve a look at how it looks now, because it doesnt have a space where you think it does.
Its currently:
Product
*space*[indent and then its plugins]

Definitly not - in my opinion.
I really, really dislike the Style Manager.
It's visual appearance is good, but for every action it RELOADS.
And it doesn't save expanded state *big tumbs down*

It saves the expanded state of whichever group the template you edited was in.

Huh? Did you update or... huh?

Edit: Ahh... okay I see what you're talking about. But the carraige return between each product is what needs to be removed...

Click somewhere else in ACP or log out and in again ... does it save state?

Ahh... this is true. I thought you meant while you're still in the Style Manager.

No.
It is gooddamn annoying when you are working on a Hack, edit a Template - then change some usergroup perm (or add a setting or whatever), you come back and the freaking style-manager forgot which template you where working on and you have to open it again ... and again and again and ... WAAAH!
How I hate this :(

Well when you don't have products expanded, theres no more space.
And just for the record, its not a carriage return per se. It is IE parsing a <select> in such a way that things that do not have a <optgroup> automatically gets space seperated from those that do. I cant speak for Opera but Firefox doesn't have this behaviour.
No, but it takes maximum 1 page reload to re-claim this state.
I could always just make it a cookie setting...