style.css, line 369

#sidebar ul li ul li{
	padding: 2px 0 2px 0px;
	border-bottom: 1px solid #dceeb7;
}
/*sidebar list level3 */
#sidebar ul li ul li ul li{
	padding: 1px 0 1px 10px;
	border: none;
}

Edit padding values and set border:none

Awesome, thanks! I will try it today!!

Okay, the lines in the middle are gone and I have zeroed out the padding--excellent. Now I would just like to change the font size...but that's not critical!

http://www.hudson2001.com/miscpics/b2evo/glossyblue-categories.jpghttp://www.hudson2001.com/miscpics/b2evo/glossyblue-categories-new.jpg

Add there something like this

font-size: 10px

Ah... I need a crash course in CSS, LOL. I tried

font: 85%

and

font: normal 85%

:D

You can also use % if you need
font-size: 85%

Good luck

Okay, now I have another category issue... not sure if it can be remedied, however. See here, when I have assigned too many categories to the post, it makes it too wide and pushes the right-justified Send Feedback to two lines and then you get all sorts of extra white space:

http://www.hudson2001.com/miscpics/b2evo/longcategories.jpg

Is there a way to make the categories themselves go to two lines, leaving the Send Feedback where it should be, without the white space?

Alternatively, if it was easier, I could move the Send Feedback to an entirely new position, like at the bottom of the post.

I don't have the files for that skin however you could simply try placing a <br /> between the span class for categories and the span class for comments in your post.main.php and then change the float:right for the comments span to a float:left
That way it would appear directly below the categories row if had one word or seven.
The related post.main.php..

<div class="post-title">
			<h2><?php $Item->title(); ?></h2>
		<span class="post-cat"><?php
				$Item->categories( array(
					'before'          => '',
					'after'           => ' ',
					'include_main'    => true,
					'include_other'   => true,
					'include_external'=> true,
					'link_categories' => true,
				) );
			?></span><br /> <span class="post-comments"><?php // Link to comments, trackbacks, etc.:
					$Item->feedback_link( array(
									'link_before' => '',
									'link_after' => '',
									'link_text_zero' => '#',
									'link_text_one' => '#',
									'link_text_more' => '#',
									'link_title' => '#',
									'use_popup' => false,
								) ); ?></span>
	  </div>

The related CSS

.post-cat {
	background: url(images/mini-category.gif) no-repeat;
	padding-left: 20px;
	float:left;
	font-size: 95%;
	color: #999999;
}
.post-comments {
	background: url(images/mini-comments.gif) no-repeat;
	padding-left: 20px;
	float: left;
	font-size: 95%;
}