Hi SgtT,
If you create a flight in the mission builder, the .mis file can be hand edited in notepad for a closer formation.
Open the .mis file from CFS2 Missions folder and look for;
[formation.0]
id=6030
type=air
waypoint_path_id=5141
directive=2
hidden=1
formation_type=1
unit_id_position.0=9192,0,0.0,0.0,0.0
unit_id_position.1=9193,0,-300.0,-600.0,0.0 L/R F/B U/D
unit_id_position.2=9194,0,300.0,-600.0,150.0
unit_id_position.3=9195,0,600.0,-1200.0,150.0
Try cutting these in half for starters, then see how the group looks. If they are grouped too close your flight will explode due to the collision bubble.
This is a tip I picked up from bearcat241.
Dave