you have a few problems going on. Spry is based on javascript, for the spry validation to work correctly, your form element names must conform to javascript variable naming rules:
1) Names may only contain letters and numbers. the only exception is the underscore, "_", character.
2) names may not begin with a number.
you have form elements that begin with numbers:
<input id="00N60000001n0nN" maxlength="80" name="00N60000001n0nN" size="20" type="text" />
and the submit button has "{}" in the name:
<input type="image" value="Submit" name="{Button_Name}" src="../pic/participate/pic/submit2.gif" height="27" width="130" />
these are causing javascript errors to occur when trying to validate. I also think the name debug is invalid:
<input type="hidden" name="debug" value="0" />