Forms with Ajax having extra line break inserted

Hiya.

We're noticing that some forms are displaying differently if they have Ajax turned on. It looks like there's an extra line break being added when Ajax is enabled when inserting via a shortcode. This causes the form to move down with an extra unnecessary line break .... I have a feeling this is related to the fact that we're inserting the code into a "slide" custom post type in the WooTheme Canvas theme, which is then shown in their slider as it does not happen on normal pages.... any ideas on how to prevent this from happening or is this something that looks like is occuring due to how the theme is handling the short code?

This is what is occurring with no ajax:

div id="gform_wrapper_1" class="gf_browser_gecko gform_wrapper">
<form id="gform_1" action="/" enctype="multipart/form-data" method="post">
<div class="gform_heading">

Here is WITH Ajax:

<div id="gform_wrapper_1" class="gf_browser_gecko gform_wrapper">
<a class="gform_anchor" name="gf_1"></a>
<br>
<form id="gform_1" action="/#gf_1" target="gform_ajax_frame_1" enctype="multipart/form-data" method="post">
<div class="gform_heading">