[Opserty]

Whoops I meant <tr> but it seems you have put it in, other then that I'd check if the CSS class.

Try this:

<style type="text/css">
.mod-warn {
    font-family: Courier, Courier New, Verdana, Arial, sans-serif;
    color: #465584;
    background-color: #FAFCFE;
    border: 1px dotted #000000;
    padding: 2px;
    width:98%;
    margin: 0 auto;
    /*overflow: auto;
    height: 200px;*/
}
</style>
<table width="90%" cellspacing="1" cellpadding="3" border="0" align="center">
    <tr>
        <td><span class="smallfont" style="font-weight:bold">Island Order Warning:</span></td>
    </tr>
    <tr>
         <td class="mod-warn"><img align="left" src="images/IObadge.png"><img align="right" src="images/IObadge.png"><center>{param}</center></td>
    </tr>
</table>

If it works you can move the CSS to the Main CSS in Style Manager so it doesn't need to be posted everything the BBCode is used.