I created a custom template using that HTML and I see the problem you are describing in the Template Preview window. However, if you create an actual listing using the template, the Auction Preview on the lister page displays the pictures correctly. I also posted the auction to eBay and it seems to be correct there as well, check it out:
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=5617876003
So I will look into the display issue with the template preview, but your template should still work as intended. Let me know if you find any other problems.
Thanks,
Auctiva David