Looks like the captcha image needs to have the height adjusted to be taller.
Can you send a link to your page so I can take a look?
For the email problem:
have you set universal email to redirect to another page after the email is sent?
If so, does it perform the redirect?
This will tell us whether the email is trying to be sent or not.
If it gets to the redirect page, but the email does not come through, double check the SMTP server settings to make sure you entered the server correctly.
On the from Tab, leave the from display name blank. Some SMTP server will not work if a from display name is entered.
is the from address on the same domains the SMTP server? For example is the smtp server address is "smtp.mydomain.com", does the from address use the same domain "firstname.lastname@example.org". If not, you may need to enter a valid address from the same domain in the Return Address field.
If it is still not sending the email, you should contact the host to see if they can look in the SMTP server error logs to see why the message is not being relayed.