That'll be the form tag trying to create it's own personal space. The easiest way to stop it doing that it to "hide" the <form> and </form> tags between table cells, like this:
Code:
<table width="750" border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="35"> </td>
<td width="20"><img src="images/7a.gif" width="20" height="60"></td>
<td width="25" bgcolor="#FF9900"> </td>
<td width="235"><img src="images/7b.gif" width="235" height="60"></td>
<td width="65" bgcolor="#FF9900"> </td><form method="post" action="https://www.2checkout.com/cgi-bin/sbuyers/purchase.2c">
<td width="170" height="60"><INPUT type="image" src="images/7c.gif" width="170" height="60"><input type=hidden name=sid value=31581><input type=hidden name=product_id value=1><input type=hidden name=quantity value=1></td>
</form>
<td width="115"><img src="images/7d.gif" width="115" height="60"></td>
<td width="85"> </td>
</tr>
</table>
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