The issue is the margin at the top of images. I align all of my images with the first line of a paragraph. The image was hanging at the middle of the first line of text instead of being flush with the top of the line. It looked really ugly in multi-post pages with short excerpts. Nothing I did to the ATO "Style IMAGES" options had an effect. I found the relevant css in css.php, copied it, pasted it to "Add HTML/CSS Inserts" and changed the top margin values.
Code:
/*image margins*/
.post img.alignleft {
float: left;
margin: 0px 10px 5px 0;
}
.post img.alignright {
float: right;
margin: 0px 0 5px 10px;
}
.post img.aligncenter {
display: block;
margin: 0px auto;
}
.aligncenter,
div.aligncenter {
display: block;
margin-left: auto;
margin-right: auto;
}
.alignleft,
div.alignleft {
float: left;
margin: 0px 10px 5px 0;
}
.alignright,
div.alignright {
float: right;
margin: 0px 0 5px 10px;
}