I was looking at it in firefox, where it is fine. Since you are using dreamweaver (which I don't use), and I think you will probably want to keep using it, look for settings about browser compatibility. I suspect dreamweaver is creating html for firefox and perhaps ignoring ie.
If you want a coding solution I will look at your code.
The Fourth Row in your Table has three columns: News, Welcome to Unique... and Publications.
The width of these three columns is : 264+371+297 = 932 px.
The width of the whole table cannot be reduced than 932px.
I had removed that particular row (the 4th row) from your table, and I am able to drag and resize the table (of course you have to consider the width of redifining.jpg also).
Hope it helps.