Common css mistakes - no more
onderhond.com
onderhond.com
I think your site falls victim to my point above due to (1) Abuse of rounded corners (it's OK to be square, man) (2) Abuse of drop-shadows (not every element needs a drop-shadow!)
When he writes "one single space", he means what we all think of as padding in one direction or margin in one direction. I think all he's really saying is "don't create extra padding by adding margin" and "don't create extra margin by adding padding."
The argument is valid: it's just kind of obvious and poorly worded.
So #2 is questionable.