In IE sometimes the way your code is written it will put spaces in it.
Yours is:

</td></tr></table>

</td></tr></table><tr><td width="100%"><img src="bottom.gif" alt="" /></td></tr>
</td></tr></table>

Now try:

<table cellpadding="0" cellspacing="0" marginwidth="0" marginheight="0" width="175">
<tr><IMG SRC="img_nametwo.gif" WIDTH="175" HEIGHT="15"></tr>
<tr><td>
<table border="0" cellspacing="0" cellpadding="0" width="175">
<tr><td width="100%">

<table border="0" background="middle.gif" cellspacing="5" cellpadding="3" width="100%" bgcolor="#eeeeee"><tr>
<td width="100%" valign="middle">
<?php }
echo "$block[content]\n"; ?>
</td></tr></table></td></tr></table>

<tr><td width="100%"><img src="bottom.gif" alt="" /></td></tr>
</td></tr></table>

It usually works.
Or you have some sort of cellpadding or cellspacing on that table, which you don't so hopefully that works for you.

Edit: It bunches up your code but thats why IE blows because Microsoft wants you to code your websites with thier products so it has funky little things like that.