The issue is with this line (line 51):
<td width="540" style="font-size: 12px; padding: 3px;"><?php echo(str_replace("\n","<BR />",(is_array($pval)?implode(", ",stripslashes($pval)):stripslashes($pval)))); ?></td>
We replace carriage returns, or line breaks, with <br> tags to account for textarea fields where someone may have hit the return key. In the case of using html editor which already has html code to account for line breaks it will result in multiple line breaks.
As long as you aren't worried about textarea fields not having line breaks you can simply remove the replace function like:
<td width="540" style="font-size: 12px; padding: 3px;"><?php echo((is_array($pval)?implode(", ",stripslashes($pval)):stripslashes($pval))); ?></td>