This was so unbelieveably easy. After googling the hack out of this and trying 20 different things, I found the easiest fix by yahooing it.
All you do is find where in the code it says
google_ad_height=’60’
and add 5 to it:
google_ad_height=’65’
That’s all!!! Check it out on Navigadget.
Note: only works with white backgrounds. There seems to be fix for other backgrounds which can be found here.