Solution:

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

a) Click to select the desired controls to adjust. (Handles appear around the control(s).)
NOTE 1: At least two controls must be selected and do not have to be attached to each other.
NOTE 2: To select more than one control, press and hold down SHIFT while selecting each control.
Handles
b) Select the 'Format' menu and select 'Horizontal Spacing'. (A submenu appears.)
c) Do one of the following:

1] Select 'Increase' to increase the spacing between the controls.
2] Select 'Decrease' to decrease the spacing between the controls.
3] Select 'Make Equal' to space controls evenly.
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 control.)
NOTE 1: At least two controls must be selected and do not have to be attached to each other.
NOTE 2: To select more than one control, press and hold down SHIFT while selecting each control.
Handles
b) Select the 'Format' menu and select 'Vertical Spacing'. (A submenu appears.)
c) Do one of the following:

1] Select 'Increase' to increase the spacing between the controls.
2] Select 'Decrease' to decrease the spacing between the controls.
3] Select 'Make Equal' to space controls evenly.
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.