[XeTeX] Problems with toc

[Sharon Kimble]

I'm using the new "tex14live", and am having great difficulties in
generating a toc without spaces between each item. I'm using
--8<---------------cut here---------------start------------->8---
\documentclass[a4paper,12pt]{report}
\usepackage{todonotes}
% \usepackage[disable]{todonotes}
\usepackage{fancybox} 
\usepackage{everypage}
\usepackage{draftwatermark}
% \SetWatermarkColor{red}
\usepackage[margin=1in,xetex]{geometry}
\usepackage[toc]{multitoc}  %% gives a 2-column toc
\usepackage[Glenn]{fncychap}   %% use Glenn or Lenny
\usepackage{lipsum} % filler text
\usepackage{etoolbox}
\makeatletter
\patchcmd{\@makechapterhead}{\vspace*{50\p@}}{\vspace*{-30\p@}}{}{}
\patchcmd{\@makeschapterhead}{\vspace*{50\p@}}{\vspace*{-30\p@}}{}{}
\patchcmd{\DOTI}{\vskip 80\p@}{\vskip 40\p@}{}{}
\patchcmd{\DOTIS}{\vskip 40\p@}{\vskip 0\p@}{}{}
\makeatother
\usepackage{fancyhdr}
\pagestyle{fancy}
\setlength{\headheight}{14.5pt} 
--8<---------------cut here---------------end--------------->8---

and
--8<---------------cut here---------------start------------->8---
\begin{document}
\maketitle
\clearpage
% \thispagestyle{plain}
\tableofcontents
\thispagestyle{fancy}

\clearpage
--8<---------------cut here---------------end--------------->8---

How can I get a properly formatted toc and yet still use my current
packages please?

Screenshot is here showing what the toc is looking like. 

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-- 
A taste of linux = http://www.sharons.org.uk
my git repo = https://bitbucket.org/boudiccas/dots
TGmeds = http://www.tgmeds.org.uk
Debian testing, fluxbox 1.3.5, emacs 24.3.92.1
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