Hi Aaron,
Well the CSS I gave you should restyle all the paragraphs.
Try this instead?
p { line-height: 1; }
I have eGuru on my test server and found that the links in the navigation blocks are spaced out, I have not noticed the Paragraphs though. But then I have limited text as this is not usually a problem with themes.
I'll take another closer look and see if I can spot where the styles are being generated.
Cheers
Mary