Have you tried changing the top and bottom padding on the level 1 menu?
ul#cssmw ul.level-1 li span a {
background-color: #f4efdb;
background-image: none;
color: #87838a;
display: block;
font-family: "Times New Roman", Times, serif;
font-size: 14px;
font-style: normal;
font-weight: normal;
margin: -1px 0 0 0;
padding: 6px 6px 6px 12px;
text-align: left;
text-decoration: none;
text-transform: lowercase;
width: 130px;
}
to:
padding: 0 6px 0 12px;