Empty Space Between Start Button and TLB - How to remove this "ghost" space?

I'm using TLB 2.2 and there is about an inch of "empty" space between the Windows Start button (XP Pro) and the first icon on TLB. I'm not showing the title and the name of my toolbar is called TLB. I get the same result even if I use the standard quick launch toolbar with my icons added to it. No, if I unlock the taskbar and drap the TLB seperator it does not allow me to remove all of the space. The TLB seperator stops with that inch of space betwen the start button and the first icon. I'm sure I'm doing something ######.

Also, are there plans to be able to add TLB to the systray?

Thanks. Love the program!