Adding Spacing Between Widgets in Sidebar Area

I finally started using Firebug for my website modifications and love it.

site url: https://www.doncodesigns.com

I am having trouble after I added the following code that workedperfectly in firebug into my actual site. I only wanted to remove the awful gray boxes around my widget areas, so I removed the image url that was in my theme and added the following code. It looked perfect in firebug, but is much too cramped in my live site.

Can someone look at my code and tell me if I omitted something or did something wrong? Thanks
J-

Here is the code: (new first – old below)
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