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The "padding" property needs to be modify, please do the following:
1) Go to the edit mode of you form.
2) Click on Preferences, Form Styles.
3) Then copy the Whole CSS code located in the "Inject Custom CSS" area.
4) Paste the code in a text editor such as "Notepad", "Sublime Text", "Notepad ++" etc.
5) Search for ".form-textbox":
6) Remove the "padding: 21px 10px 19px 10px;" line of code.
7) And add instead the following lines of code:
padding-bottom: 2px !important;
padding-top: 2px !important;
8) Then copy the whole code from the text editor, and paste it instead of the one that is located in the "Inject Custom CSS" area.
That will fix the problem, you may see my cloned version fully working here: http://form.jotformpro.com/form/50787366206966?
You might just simply clone my form in your account and use the cloned version instead: http://www.jotform.com/help/42-How-to-Clone-an-Existing-Form-from-a-URL
If you need anything else, please open a new thread, we will be glad to assist you.
Great support! Thanks!!!!