Labels are used for accessibility purposes and to help users understand the form. They are not submitted with the form so it won't effect the layout of the email Bravenet sends.
Thanks for your help, it is now sorted.. Just got rid of the label tag and replaced with input type
Works great, now just to get the site to look great on IE as does on firefox and safari.. frustrating.
Just as an aside... You don't need that massive background image. You can make a much smaller one and get it to repeat using css. Just replace
background="../Images/Untitled-33-4edit.jpg"
with
style="background: url('../Images/small-image.png') repeat: repeat;"
(This assumes you made and uploaded a smaller image called small-image.png)
It will repeat horizontally and vertically.