When I look at the html for your page I see this (which I assume resembles what's in the template, although I haven't looked):
Code:
<input id="navbar_password" class="textbox" type="password" size="10" name="vb_login_password" tabindex="102" style="display: none;">
<br>
<input id="navbar_password_hint" class="textbox default-value" type="text" value="Password" size="10" name="vb_login_password_hint" tabindex="102" style="background-image: url("mortalgaming/form_bg.png"); margin-left: -102px; display: inline; width: 113px; margin-top: 8px;">
There are actually 2 password boxes, one with the message and one without. Only one is visible at a time and when you click it switches. There's a <br> in between them, so one shows up on the same line as the username and the other doesn't. Maybe it wil fix it if you move the <br> to be before the id="navbar_password" input tag.