There are no line breaks at that location. When I check the source code this seems to be the line of code that is relating to the large gap: <form method="post" action="https://www.paypal.com/cgi-bin/webscr">
These related posting seem to be having the same issue but I need some fresh eye looking at this. I'm just going in circles at this point.
http://wordpress.org/support/topic/integrating-a-paypal-buy-now-button-on-my-page?replies=15
This is the short code of the button itself created through S2Member plugin:
[s2Member-PayPal-Button level="1" ccaps="" desc="Full Access Member / JockUp Guy photo sets and Chat Room video capability." ps="paypal" lc="" cc="USD" dg="0" ns="1" custom="jockup.com" ta="12.99" tp="1" tt="M" ra="12.99" rp="1" rt="M" rr="1" rrt="" rra="1" image="http://jockup.com/wp-content/uploads/2012/06/paypal_subscribe.png" output="button" /]