What a fabulous cake you have there, SweetNess14445! I think it looks great. As far as working with fondant,or just executing cake decorating techniques in general, I have found several video tutorials on the youtube.
Here’s one user who has posted several helpful videos. Whether you want to purchase any of the products from their website is up to you, of course, but at least their videos are helpful.
http://www.youtube.com/user/SweetWiseInc
Regarding the space between layers, can you clarify what you mean a little bit? Is this happening to you if you use a filling, frosting or otherwise, between them, or is this happening if you just stack one layer on top of another with no filling between them? For now, the only thing I can think of is to place something firm and flat (like a cardboard round, a cake lifter, or a baking sheet) over the cake and press down to squeeze out any air pockets between the layers. This will also help prevent any “blowouts” occurring later after you’ve frosted the cake or covered it with fondant. Even though cakes are soft and delicate, they’re not so delicate that pressing down on them using this method will destroy the cake (assuming it’s a good recipe and baked properly).
Great job with this cake, though. I like it a lot!
- MP 
BTW, did you take any pics of the cupcakes for your daughter’s b-day?