I've created a couple of forms to go into wordpress sites in the sidebar.

It seems there always is an issue with the iframe displaying that isn't ideal as it pushes everything down.

Is there a workaround for this?

Here is an example of what I am talking about: http://screencast.com/t/pXIV3plzBz

I think the Customize margins on the form properties tab will correct this.

Another thing to check is how many Required items you have setup. If you have them all setup as required, you will need to alter the setting in the form for how many error messages it will display at a time. Put 1 in there for such a small form, that might also help adjust some of that space.