Knowing how to adjust this spacing is helpful in that when you're trying to save paper, you can decrease the spacing. Or conversely, if you know you're going to be reading back from your notes in class, you might want to increase the spacing to make it easier to read. I found the instructions here but I'll put them here too.
-To make the adjustment, turn the power switch on your machine to the off position.
-Hold down the S- key as you turn it on.
-Press PH- (M- for more) to increase the spacing between strokes or press HR- (L- for less) to decrease the spacing between steno outlines.
-When you are done adjusting the spacing, press KWR- (Y- for yes) or TPH- (N- for no) to save the setting and go back to writing and test it out. Repeat until you have it how you want it.
Have a Stenograph other than the 400 SRT? Check this link for the online versions of user manuals. Click your type of machine in the left column.