I just googled, only found cheats like setting negative margins to get rid of that gap. And if it came to that I'd rather make the text into gifs with transparencies and have the background be a single image without the text. A small gap like that shouldn't cause any visual problems in that case.
Apparently it's frustrating a lot of people:
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I call this the gap problem and if you are Eric Meyer and you are reading this, maybe you could drop me a line and tell me how to avoid it (never mind that the rest of the tutorial may be too complicated anyway...). No matter what you do, set every margin and padding to 0, the gap will not disappear. You can of course make the font smaller but not until 5pt will you get a smaller gap between items. I also tried 1pt and there was still a gap between some items. Not all, which makes you wonder once again...
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from:
http://www.alexandersperl.de/tutorials/css/sitemap.html