Hi, I placed a testimonials block on my homepage and in looking at the code in /design/themes/basic/templates/addons/discussion/blocks/testimonials.tpl, it does show
{if $discussion.type == "C" || $discussion.type == "B"}
{/if}
with the nl2br being the element that creates line breaks between the testimonial blurbs, but there are no spaces showing. It's the same using all wrapper styles.