Hi ajberman,
I have had a quick look and it seems that the only change required is this (it requires your padding edit to be removed):
html body ul.kebo-tweets li.ktweet {
height: auto;
}
Is that the look you were aiming for, that is essentially the intended goal, but as you have experienced it is difficult for me to create styling which will fit into any theme.
The theme styling which caused the problem was this:
footer aside.widget ul li {
height: 20px;
}
Which is a very general identifier considering the effect it has. I will add this small CSS fix to the plugin, as it may help others with similar theme code. I will do some further testing and then update later tonight.
Thank you very much for letting me know about the problem you were having, it has helped me to hopefully improve the plugin for future users, which I really appreciate.