Nametags both above players and in the tablist have a gap the size of a tab after them.

Implementing API version 1.8.8-R0.1-SNAPSHOT

Are you sure the Suffix section doesn't have an empty color char? Such as &f

@sgtcaze Yes, I can put the configs onto Pastebin if you like. I tried a mix; some have &f, some have '', and some just don't have the prefix tag.
*This is in groups.yml
http://pastebin.com/dpjXD1JA

Yeah each section needs a Prefix/Suffix, otherwise the white color code &f is applied. This is adding the 2 character space you see.

@sgtcaze Found the problem and hence the bug: When there is bold formatting in the prefix, it adds that extra space. Pls fix :P

So I'm not permitted to take out the prefix? How would I remove it altogether?

I'll look into it, but this sounds like a minecraft thing. Stay tuned for an update ;3

@sgtcaze Still not fixing problem

I've done several tests, and this appears to be the default behavior of vanilla minecraft. What is happening is Minecraft tries to size the tab depending on the number of characters (prefix + name + suffix). The more color codes you have, the larger this indent factor will be. We are unable to change that spacing.

Try Dev build 39 on Jenkins and above.