DRC error in pcb designing
You will need to change the design rules to allow closer traces and pads to be able to use that component, 0.4 is a rather large spacing for SMD components is there a reason why it is so large?

What program are you using? If it is Eagle I might be able to check my one to show you how.

If you can get that IC in a larger package I would recommend that though, fine SMD is quite finicky.