For some odd reason line-height is being specified for that area via css...
Either search your css templates for line-height and see why/how the 30px is there and remove it OR add this to the bottom of additional.css:
Code:
.navtabs > ul.floatcontainer ul.popupbody a {
line-height:auto !important;
}
If you're calling external css or have modified the css of this style (its custom yes but if you didn't code it yet installed or purchased it) then you need to figure out where the line-height is being included from OR inherited from because skimming the other definitions it seems line-height is being added to a few others where normally its not.