I know this is really late to this thread, but thought I might help someone else. I had the same issue, and fixed it with these lines of code:
.lifestream_text { margin-left: 20px;}
.widget_lifestream ul.lifestream li { background: left 15px; }
The .lifestream_text pushed it over so it didn’t sit directly underneath the icon. The li fix pushed the icon down so it sat by the text.
You may have to do some editing to any other ul li styles you’ve got, so your mileage may vary!