[Lynne]

The problem is that your <if> has an <else> and then the </if>. So, are you wanting to remove ALL of that or only get rid of the <if> part (and then your are left with the <else> part with no condition around it)?
if:

<vb:if condition="$show['member']">
<div id="pageWrapper"><div class="pageWrap">

else:

	<vb:else />
		<div class="loginLeft">
				<!-- login form -->

/if:

				</ul>
				</div>
				</vb:if>
	</vb:if>