Would you be able to provide a link to a live version of this? It's much easier to work out the issue with code rather than an image

If your example is local, and you use Firefox try using Firebug? (http://getfirebug.com/). Install this addon and use it to examine the elements of your HTML and the CSS settings applied to them, it should help you figure out if this is additional padding, margins or something else that's causing the extra space.

Hope this helps,

Rick.

 Thanks for your Reply Rick,

The site is not live and is being developed locally, so unfortunately there is no way for me to be able to link over the actual code.  The CSS for the containers is as follows:

#Left_SideBar {
margin-top: 40px;
float: left;
height: 520px;
width: 300px;
background-image: url(Images/Left_SideBar_Container.jpg);
}

Please note that the margin of 40px is to space it out from the div above it, this has ZERO effect on the gap at the top of the div.

#Left_Sidebar_Paneholder {
width: 285px;
overflow: auto;
height: 400px;
}

I am still totally convinced that this has something to do with the way that DNN modules have their menu's at the top of a container.  As you can see in my picture, when you scroll down, the text is flush.  If you scroll to the top however, the gap is there.  

This would not be such an issue although it is affecting how I wish to have the site laid out. I am suprised nobody else has come across this issue before. They must be using layouts that are just different from mine where that extra space does not affect appearance as much.