I’ve written a simple plugin that removes the html line breaks (br) between tags when the command wp_tag_cloud() is called from within a post. This is useful for people running a hack like runPHP to be able to execute commands since this behavior doesn’t manifest itself if you run the command from within a template.
To use this plugin, download one of these files and copy it to your /wp-content/plugins/ directory:
If you grabbed the one ending in .txt, rename it to end it .php and simply activate the plugin from the Admin->Plugins page. The dreaded line breaks will dissapear. You can view this plugin in use on this tag cloud from neatostuff.com