Hi Emil, I realized that it is the new version of wordpress 3.4.1. I have 3 blogs, and 2 of them had the new version installed and those ones had huge margins above the paypal buttons. The one that had the old version of wordpress did not have a huge margin above my paypal buttons. Then I installed the new version on that blog, and now the margins are big above my paypal buttons on that one.
Could it still be my theme that is the problem? It was fine before I installed the new version of wordpress.