I can't set line spacing in menus content. This affects all th menus content but is more notable on the Konqueror boolmargs menu and the K menu (due to the number of list items they contain). All was OK since I upgraded from one KDE version to a new one.
I have moved from Mandriva 2007.1 to Kubuntu 7.10 /i386 (Gutsy) and now running KDE 3.5.8 on a 2.6.22-14-generic kernel (don't know which one I had under Mandriva).
I don't know if it's important but I use a nVidia graphic card with a nVidia driver on a dual-core P4.
Here is a snapshot showing how the konqueror bookmarks look like now, on a 1400x1050 screen.
The same bookmarks just fitted into a single column on a 1280x960 screen (same dpi, same font and size). The visible difference was the line spacing...
Sorry for the long delay in replying and thanks for posting the screenshot.
Now I know what you are talking about. However, I am not aware of any such settings - I take it you want to make the lines a little smaller so they fit into one column.
My dirty workaround in this case: create some meta-folders for stuff you don't need so often, individual links that can be grouped together, etc.