Solution:

1) If the Database window is not activated, activate the Database window.
2) Click the 'Forms' tab in the Database window.
Forms tab
3) Select the desired form from the list box. (The selected form is highlighted.)
4) Click 'Design'. (The selected form appears in the Design view.)
5) To adjust the spacing between controls horizontally, do the following:

a) Click to select the desired controls to adjust. (Handles appear around the controls.)
NOTE: At least two controls must be selected and do not have to be attached to each other.
Handles appear around selected horizontal controls
b) Select the 'Format' menu and select 'Horizontal Spacing'. (A submenu appears.)
NOTE: Make sure to select HORIZONTAL Spacing.
c) Select either 'Increase' or 'Decrease'. (The controls are either spaced closer to or further apart from each other.)
NOTE: If the grid is turned on, the controls move one grid unit closer to or further apart.
d) Repeat steps 5)b) and 5)c) until the desired spacing is achieved.

6) To adjust the spacing between controls vertically do the following:

a) Click to select the desired controls to adjust. (Handles appear around the controls.)
NOTE: At least two controls must be selected and do not have to be attached to each other.
Handles appear around selected vertical controls
b) Select the 'Format' menu and select 'Vertical Spacing'. (A submenu appears.)
NOTE: Make sure to select VERTICAL Spacing.
c) Select either 'Increase' or 'Decrease'. (The controls are either spaced closer to or further apart from each other.)
NOTE: If the grid is turned on, the controls move one grid unit closer or further apart.
d) Repeat steps 6)b) and 6)c) until the desired spacing is achieved.