When you look at the html code when the template is run there are a bunch of extra characters showing. for example:
<table id="Table1" cellSpacing="1" cellPadding="0" width="100%" border="0"><><>                         </>
<tbody>
None of the   should be there. When you create the template using html does all of the text within the tags have to be on one line and not indented? for example instead of:
<tr>
<td>
<p>Sample Text</p>
</td>
<tr>
you have to put:
<tr><td><p>Sample Text</p></td></tr>