Hi Jeff,
I am afraid that I am not able to reproduce the issue of vertical space between the xptaskbarboxes being seen even when the VerticalPadding property of the XPTaskBar is set to zero with the attached sample.
Could you please modify the sample so that the issue could be seen clearly? This will help us to resolve the issue soon.
Thank you for your interest in Syncfusion products.
http://websamples.syncfusion.com/samples/Tools.Windows/f60526/Main.htmBest regards,
Golda