My guess is that the space is caused somewhere here:
Code:
<tr valign="bottom">
<td class="main_tcat_left"><img src="{IF}/tcat-bl.png" alt="" border="0" /></td>
<td width="100%" style="padding-bottom:12px">
I suggest that you copy the entire code, put it on editpad and save. Then in your FORUMDISPLAY template start removing codes little by little starting with the area I posted above.
Use the copy and paste method so if the results are horrible or no change occured you can always paste the code back. Generally I make wide spaces around the codes I'm editing so I can navigate back to it easily. I also tend to wrap my codes with:
Code:
<!-- editing here -->
code to edit here
<!-- / editing here -->
That way I can also check where I've been editing. Just a few tips for troubleshooting.