First of all it looks nice when you use a bit of graphics to attract the users. But don't forget the basic things. I felt the form odd looking. No modification done over the form.Do the proper CSS. Well while using jQuery in the script causes a lot of trouble of IE(particularly 6). A lot of tweaking is required therefore i request the script of the jQuery.
The bug has shown it's ugly head in IE 7/8/9. Here is how you trigger the bug.
Type in a email address, type in your name go back and change your email address. Your cursor will rapidly switch between the email field and the name field. In my case crash IE.