[RobbieZ]

You can either follow Lynne's way or setishock's way but you will still have your advanced search link!

By removing this

<ul class="navbar_advanced_search">
			<li><a href="search.php{vb:raw session.sessionurl_q}" accesskey="4">{vb:rawphrase advanced_search}</a></li>
		</ul>

Will now leave you with your blank space which is removed or should I say reduced by searching for this in vbulletin-chrome.css

.navbar {
	position:relative;
	height:{vb:math {vb:stylevar navbar_tab_border.borderWidth} + {vb:stylevar navbar_tab_size.height} * 2}px;
	background:{vb:stylevar navbar_background};
	margin:{vb:stylevar navbar_margin};
	color:{vb:stylevar navbar_color};
	font:{vb:stylevar navbar_font};
	-moz-border-radius-bottom{vb:stylevar left}:{vb:stylevar border_radius};
	-moz-border-radius-bottom{vb:stylevar right}:{vb:stylevar border_radius};
	-webkit-border-bottom-{vb:stylevar left}-radius:{vb:stylevar border_radius};
	-webkit-border-bottom-{vb:stylevar right}-radius:{vb:stylevar border_radius};
}

Change the height to read

height: 30px;

The math works out your border width and navtab height so your navbar links sits nicely nested in the space provided by this!

The default style math is worked out at 53px, I made it 30px so it still makes your container look nice, of course the bigger your navtabs then you will have to tweak this height accordingly.

Edit: Nearly forgot this WILL affect blogs/home and any other navbar links you have on other pages!