Admin Area Spaced

Here is the most current revision (newer than 1.6) of the D5 Framework admin CSS:

/*--------------ADMINISTRATION SECTION----------------
  --------------edit at your own risk ----------------*/
#tabs-wrapper{margin:0;padding:0}h2.with-tabs{float:left;margin-right:1em}ul.tabs{margin:1.7em 0 0 !important;padding:0 !important}

img,a img{border:none;outline:none}input{color:#494949;font:12px/100% Verdana, sans-serif}textarea,select{color:#494949;font:12px/160% Verdana, sans-serif}em{padding:0 3px 0 0}hr{background:#5294c1;border:none;height:1px;margin:0;padding:0}ul,quote,code,fieldset{margin:.5em 0}ul{margin:0.5em 0 1em;padding:0}ol{margin:0.75em 0 1.25em;padding:0}ol li,ul li{margin:0.4em 0 0.4em .5em}ul.menu,.item-list ul{margin:0.35em 0 0 -0.5em;padding:0}ul.menu ul,.item-list ul ul{margin-left:0}ol li,ul li,ul.menu li,.item-list ul li,li.leaf{margin:0.15em 0 0.15em .5em}ul li,ul.menu li,.item-list ul li,li.leaf{background:transparent url(images/menu-leaf.gif) no-repeat 1px .35em;list-style-image:none;list-style-type:none;padding:0 0 .2em 1.5em}ol li{margin-left:2em;padding:0 0 .3em}ul li.expanded{background:transparent url(images/menu-expanded.gif) no-repeat 1px .35em}ul li.collapsed{background:transparent url(images/menu-collapsed.gif) no-repeat 0 .35em}ul li.leaf a,ul li.expanded a,ul li.collapsed a{display:block}ul.inline li{background:none;margin:0;padding:0 1em 0 0}#user-login-form .item-list ul li {background:none;padding:0}fieldset ul.clear-block li{background-image:none;margin:0;padding:0}dl{margin:0.5em 0 1em 1.5em}dl dd{margin:0 0 .5em 1.5em}table{margin:1em 0;width:100%}thead th{border-bottom:2px solid #d3e7f4;color:#494949;font-weight:700}th a:link,th a:visited{color:#6f9dbd}td,th{padding:.3em .5em}tr.even,tr.odd,tbody th{border:solid #d3e7f4;border-width:1px 0}tr.odd,tr.info{background-color:#edf5fa}tr.even{background-color:#fff}tr.odd td.active{background-color:#ddecf5}tr.even td.active{background-color:#e6f1f7}td.region,td.module,td.container{background-color:#d4e7f3;border-bottom:1px solid #b4d7f0;border-top:1.5em solid #fff;color:#455067;font-weight:700}tr:first-child td.region,tr:first-child td.module,tr:first-child td.container{border-top-width:0}span.form-required{color:#ffae00}.description{color:#898989;font-size:0.92em;line-height:150%;margin-bottom:0.75em}.messages,.preview{margin:.75em 0;padding:.5em 1em}.messages ul{margin:0}.form-checkboxes,.form-radios,.form-checkboxes .form-item,.form-radios .form-item{margin:0.25em 0}#center form{margin-bottom:2em}.form-button,.form-submit{margin:2em 0.5em 1em 0}#watchdog-form-overview .form-submit,.confirmation .form-submit,.search-form .form-submit,.poll .form-submit,fieldset .form-button,fieldset .form-submit,.sidebar .form-button,.sidebar .form-submit,table .form-button,table .form-submit{margin:0}.box{margin-bottom:2.5em}.profile dd{margin-bottom:1.6em}ul.primary,ul.primary li,ul.secondary,ul.secondary li{background:none;border:0;margin:0;padding:0}ul.primary{float:left;padding:0.5em 0 10px}ul.secondary{border-bottom:1px solid #e9eff3;clear:both;margin:0 0 1em;padding:0 0 1em;text-align:left}ul.primary li a,ul.primary li.active a,ul.primary li a:hover,ul.primary li a:visited,ul.secondary li a,ul.secondary li.active a,ul.secondary li a:hover,ul.secondary li a:visited{background:none;border:0;height:auto;margin:0;padding:0 1em 0 0;position:relative;text-decoration:none;top:-1px}ul.primary li.active a,ul.primary li.active a:link,ul.primary li.active a:visited,ul.primary li a:hover,ul.secondary li.active a,ul.secondary li.active a:link,ul.secondary li.active a:visited,ul.secondary li a:hover{background:none}ul.primary li.active a,ul.secondary li.active a{font-weight:700}tr.odd td.menu-disabled{background-color:#edf5fa}tr.even td.menu-disabled{background-color:#fff}#autocomplete li{cursor:default;margin:0;padding:2px}#autocomplete li.selected,tr.selected td,tr.selected td.active{background:#027ac6;color:#fff}fieldset{background:#fff;border:1px solid #d9eaf5;margin:1em 0;padding:1em}fieldset legend{display:block}html.js fieldset.collapsed{background:transparent;padding-bottom:.6em;padding-top:0}html.js fieldset.collapsible legend a{background:url(images/menu-expanded.gif) no-repeat 0 50%;padding-left:2em}html.js fieldset.collapsed legend a{background:url(images/menu-collapsed.gif) no-repeat 0 50%}div.admin-panel,div.admin-panel .description,div.admin-panel .body,div.admin,div.admin .left,div.admin .right,div.admin .expert-link,div.item-list,.menu{margin:0;padding:0}div.admin h3{margin-bottom:0}div.admin .left{float:left;width:48%}div.admin .right{float:right;width:48%}div.admin-panel{background:none;padding:1em 1em 1.5em}div.admin-panel .description{margin-bottom:1.5em}div.admin-panel dl{margin:0}div.admin-panel dd{color:#898989;font-size:0.92em;line-height:1.3em;margin-bottom:.65em;margin-top:-0.2em}table.system-status-report th{border-color:#d3e7f4}tr.selected td a:link,tr.selected td a:visited,tr.selected td a:active{color:#d3e7f4}.messages{background-color:#fff;border:1px solid #b8d3e5}.preview{background-color:#fcfce8;border:1px solid #e5e58f}div.status{border-color:#c7f2c8;color:#33a333}div.error,tr.error{background-color:#FCC;color:#a30000}.form-item input.error,.form-item textarea.error{border:1px solid #c52020;color:#363636}table.system-status-report tr.error,table.system-status-report tr.error th{background-color:#fcc;border-color:#ebb;color:#200}table.system-status-report tr.warning,table.system-status-report tr.warning th{background-color:#ffd;border-color:#eeb}table.system-status-report tr.ok,table.system-status-report tr.ok th{background-color:#dfd;border-color:#beb}

My default install of Framework looks fine. So if that CSS doesn't fix it, you may want to check the margins of your h2 tag (if you customized the theme), and possibly the margins of #tabs-wrapper and h2.with-tabs in the first line of the admin CSS. Setting h2.with-tabs {float:left;margin:17px 17px 17px 0;padding:0} would be my best guess to override any h2 settings you defined at the top of the stylesheet.