Marcus,
Check out ASCIIROWS variable. It doesn't make much sense, unfortunately, but changing the value DOES change the vertical spacing -- you'll probably have to experiment with it a bit.
Also check the Microsoft site for the Knowledge Base. I think there may be an article there that gives the "magic" setting for ASCIIROWS -- seems like I remember it being 40-something. Like I said, it doesn't make much sense, but changing it does make a difference.
I spent about 5 hours with it during one of the betas and still couldn't find the silver bullet.
Dave