Yeah, the <else /> is screwing it up for you - you are missing the </td> after the newthread image/link (the browser is smart enough to interpret it correctly, but you'd get errors if you tried to validate the html). I think you can change this line by removing the stuff in red:
Code:
<a href="newthread.php?$session[sessionurl]do=newthread&f=$foruminfo[forumid]" rel="nofollow"><img src="$stylevar[imgdir_button]/newthread.gif" alt="$vbphrase[post_new_thread]" border="0" /></a><else /> </td>