I added in more detail to my Email Template. It turns out that the box model on Microsoft Outlook 2007 is different than the box model in IE6 and 7. Specifically, when calculating the width of a TD cell, it can’t deal with padding on the same item. So I had to separate the padding from the width and never have them on the same item.
The sample has alot more detail now. I also noticed that anchor links have alot of trouble in Outlook 2007 when trying to give them backgrounds and borders. Still working on it.