Blockquotes and the infamous <p> tags...

[Aaron Swartz]

<style>blockquote p { margin: 0 0 0 0 }</style>

will get rid of the spacing, but is problematic if you have a 
blockquote with more than one paragraph.

<style>blockquote p:first-child { margin: 0 0 0 0 }</style>

is probably a better compromise, but does look a little funny.

-- 
Aaron Swartz: http://www.aaronsw.com/