I really don't know about any form problems here, but if you simply look at the CSS, the form CSS is not getting applied to the email blank. So you could try adding this to the CSS - preferably to custom CSS if you have that:
input[type="email"]
{
padding:1.5%;
box-shadow:inset 1px 1px 5px rgba(0, 0, 0, .05);
background:#FCFCFC;
border:#EEE 1px solid;
color:#999;
font-family:"Droid Sans", sans-serif;
font-size:13px;
}