Got any extra <p>&nbsp;</p> elements in there? That’s usually my problem when I see that.

Thanks.. but can you tell where I have an extra <P>? I checked on the page of that item itself and replaced the <p> with a div tag... and I checked on the page_list template and don't see anything there.. I'm baffled..

Looks like your sidebar is ever so slightly overlapping with the horizontal rule (if you delete the BBB image using Firebug, for example, then the rest of the page list slides up to where it should be). Need to give a little more room in there.

Also, there's a bug in C5 that makes the system look for a view.css file in your blocks directory if you use a custom template for the page list block (well for any block that has its own view.css file) -- so you should copy concrete/blocks/page_list/view.css to blocks/page_list/view.css. This doesn't have anything to do with the layout problem but will speed up page load by 5 milli-milli-seconds (and avoid a 404 request on every page load).