Drupal 6 --> 7 : reducing vertical space in Panels

Hello --

We just upgraded a copy of our Drupal 6 site using the Zen / CTI-Flex 
theme to Drupal 7 using an AtaptiveTheme base with the Mix and Match 
theme.  Everything went smoothly, except for how Panels behaves in the 
new D7 theme.  We have a simple two-column center panel between two side 
columns (see http://www.hampton.lib.nh.us for the current D6 production 
site), and the D7 version of Panels creates an unacceptably huge amount 
of vertical white space between the panels.  If I change each individual 
panel to "no markup", the vertical panel space shrinks, but I also lose 
the side and center margins of the two columns, which I would like to keep.

Before I start trying to change the Panels module code, does anyone have 
a simple suggesting for reducing the vertical space between panels in a 
column?

Thanks in advance ...

Darrell Eifert
Lane Memorial Library
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