Generally we need to put the controls in Vertical or horizontal or grid layout depending upon the requirement.
Then the resizing effect will be shown on the controls.
If you place spacer between controls, Controls may get resized and only the space between the controls will be changed.
So you should not put any spacer, if you want resize the controls.
Try this.
This is what I observed with dialogs developed by me. But some times layouts will act differently.
Thanks,
-Segu,