Hi,
You're not clearing your floats! 
And your text isn't aligned center - it's just the text is getting out of the way of the floats on either side.
Code:
.hd {
color: #FFFFFF;
font-family:verdana;
font-size:12px;
font-weight:bold;
background: url(http://images.hi5.com/images/header/subnav_gradient2.gif);
padding:5px 0px 5px 2px;
overflow: hidden; /* Clear children */
width: 100%; /* Clear children in IE */
}
Perhaps a safer method for clearing is to simply add a clearing div.
Code:
<div class="hd">
<div style="margin-left: 1em; float:left">Left Text</div>
<div style="margin-right: 1em; float:right">RIGHT TEXT</div>
<div style="clear: both"></div>
</div>
It's thoroughly covered in the CSS FAQ at the top of the forum
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