I've had to do a lot of template adjusting to get the label and the field lined up next to each other. Now that they are (although the radio buttons are not), the spacing between fields are double or more what I would like to see. It didn't matter how I configured the display, it still shows up with a bunch of white space.
That is all coming from your template's CSS... not DT Register itself. Switch to a core Joomla template for a second and you'll see. You'll have to make adjustments to styling in your template that is being applied to form elements. One example from your reset.css file...
.inputbox {
margin: 5px;
}
That's not all of your added spacing, but certainly a piece of it.
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www.JoomlaEmployee.com
.