You could use a regular button instead of the "hide" radio button to solve the problem.
Find this:
Code:
<input name="r2" type="radio" checked value="" onClick="toggleT('e$post[postid]','h')"><smallfont>Hide</smallfont>
Replace it with this:
Code:
<input name="r2" type="button" value="Hide" onClick="toggleT('e$post[postid]','h')">
As for the javascript error, try using this for the image button and maybe it'll fix it.
Code:
<a href="java script:return false;" onClick="toggleT('e$post[postid]','s') return false;"><img src="http://www.yoursite.com/forums/images/quickedit.gif" border="0"></a>