There are a couple of things going on here. The first thing is how it looks in DW after you apply the form to the page. Dreamweaver does not render the pages the same as your browser does and it rarely looks good in design view. This is why you should only check the look of the pages by previewing them.
As for the text you are getting in the form this is because you are just viewing the php file, in order for it to work correctly you will need to ensure that it is being served up from a web server with php configured. If you have a hosted account like this it would be best to upload the page and the folders to your site then check it there.