I have tried that table creator you posted, and not only does it generate non-standards-complaint XHTML, but you'll notice between lines 22 - 31 (I put a comment there so you can see it) that a problem exists. I modified the code only by adding tabs (and the comment) to investigate the tag nesting (the issue you describe is usually caused by improper nesting).
HTML Code:
<table width="466" cellpadding="0" cellspacing="0" border="0">
<tr>
<td colspan="3">
<img src="images/case/top.jpg" width="466" height="35" />
</td>
</tr>
<tr>
<td width="38">
<img src="images/case/left.jpg" width="38" height="317" />
</td>
<td width="390" height="317" background="images/case/center.jpg" align="center">
<table width="390" height="317" border="0">
<tr>
<td width="45" ></td>
<td align="center"></td>
<td width="50" ></td>
</tr>
<tr>
<td align="center"></td>
<td align="center">
<table>
<!-- nesting problems start here -->
<tr>
<td height="14" width="53">
<td height="14" width="53">
<td background="images/ribbons/commander1st.gif" align="center" height="14" width="53">
</td>
<td background="images/ribbons/commander2nd.gif" align="center" height="14" width="53">
</td>
</tr>
<!-- / nesting problems end here -->
<tr>
<td background="images/ribbons/soldiers.gif"align="center" height="14" width="53">
</td>
<td background="images/ribbons/silverStar.gif" height="14" align="center" width="53">
</td>
<td background="images/ribbons/goodConduct.gif" height="14" align="center" width="53">
</td>
<td background="images/ribbons/tra.gif" height="14" width="53" >
</td>
</tr>
<tr>
</tr>
</table>
</td>
<td> </td>
</tr>
<tr>
<td width="45" ></td>
<td align="center">
<img src="images/badges/sharpshooter.jpg">
</td>
<td width="50" ></td>
</tr>
</table>
</td>
<td width="38">
<img src="images/case/right.jpg" width="38" height="317" />
</td>
</tr>
<tr>
<td colspan="3">
<img src="images/case/bottom.jpg" width="466" height="38" />
</td>
</tr>
</table>
As you can see, this is an issue with the tool you mentioned and not with this mod.