Everytime i try to code a page with multiple images stuck together (ala lissa's index file) when i indent my code, as i usually do, i get unwanted spaces between images. This drove me insane when making the main page of my site for ages, until i finnaly tried a last ditch resort i was sure wasnt work - i removed all the spaces and linebreaks. Guess what? it worked! Now, i've checked sites where they stick images together and indent their code, and they seem to have no problem with it. So why is it that i can't seem to make my images have no space between them without removing all the whitespace?

Every html tutorial i've read says whitespace doesnt matter...so, why does it matter to me?

I think it depends on where your site is located. Some free hosts have issues with line breaks and whatnot in coding.

I have my own domain, i'm hosted by dreamhost

*normally* white space does not matter.

as you have discovered, it does in some cases though such as...

having images hugging side by side
<img><img>
instead of...
<img>
<img>

it also has a difference within tables to make them hug the sides too.

<td>stuff here</td>
instead of...
<td>
stuff here
</td>

considering these are not so well known, most tutorials may gloss over the fact.