Right click (Command + Click) on the word "Inbox" in that left hand pane.
In the resulting contextual menu, choose "Use small Mailbox icons"
See what happens.
the window on the left side that shows the in box sent box trash and custom mail boxes has a huge gap in between each item. I am having to actually scroll up and down to see my mailboxes. how do i eleminate this gap? I am on tiger 10.4.11 and on a g5. thank you for your help. I am new to this site.