Prior to the adoption of Cascading Style Sheets (CSS), the spacer GIF was a transparent image, often used to control blank space within a web page, that can be resized according to the width and height dimensions it is given.
Spacer GIFs are not browser specific. The reason a spacer GIF is invisible is so that an HTML developer can create a table cell and fill the background with a specific color that can be viewed through the transparent spacer GIF.
For instance, let's say the developer wants to create a blue box that is 500 x 500 pixels wide and high. Instead of using a separate blue graphic that is 500 x 500 pixels (taking up additional bandwidth), the developer can specify the table cell background color and specify the dimensions of the spacer GIF that already exists.
Source Cited:
http://en.wikipedia.org/wiki/Spacer_GIF
Usually HTML developer reply on using photoshop/firework software that automatically create space GIF when it export into Dreamweaver like @aphoe has said it all.