See screenshot at http://david.woodhou.se/wnck-applet.jpeg The applet doesn't seem to use the full width available on the panel unless it's forced to by setting the minimum size. Also, its definition of 'when space is limited' seems to have changed -- it'll let each box in its list get _really_ tiny now, so that only one character is readable, before it'll start to group windows.
*** This bug has been marked as a duplicate of 147327 ***
Changed to 'CLOSED' state since 'RESOLVED' has been deprecated.