I haven't found a way to directly alter line spacing in Excel, but here are a couple of suggestions.
If you have this problem:
_______________
EMPLOYEE
NAME
Right click on your cell and choose "format cell". On the "Number" tab, set the category to text. On the "alignment" tab, set the "Horizontal" to general, and the "Vertical" to top.
Finally (and most important). Change the font. The Calibri font in Excel 2010 inherently has more space between lines than other fonts (plus it looks like the font a 6 year old would choose!). Arial probably looks the most professional on spreadsheets, but
play around with other fonts until you find what you're looking for.