When list items are converted to inline, they have a set amount of padding on their left edges that cannot be removed. To make the list items sit beside each other without any gap, they must be set to "float: left". At this stage we cannot see that the gap has closed.
A width is also required when floating an element - unless it is an image.
CSS CODE
ul#navlist
{
padding: 0;
margin: 0;
list-style-type: none;
}
ul#navlist li { display: inline; }
ul#navlist li a
{
float: left;
width: 5em;
}
HTML CODE
<ul id="navlist">
<li><a href="#">Item one</a></li>
<li><a href="#">Item two</a></li>
<li><a href="#">Item three</a></li>
</ul>