Went through the code a little more carefully this time. I think your ROWSPANs are ok, and I think your workaround is probably the best solution to this problem. For your information, I tried defining the heights in an extra column and it also worked. Here's the code for the table (additions to your own code labelled in red):
<TABLE cellSpacing=0 cellPadding=0 border=1>
<TBODY>
<TR><!-- SEARCH -->
<FORM>
<TD colSpan=4 rowSpan=2>Search: <INPUT size=30></TD></FORM><!-- TOP ROW SPACING -->
<TD colSpan=5><IMG height=10 src="" width=502></TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=10></TD></TR>[/red]
<TR><!-- ABOUT -->
<TD vAlign=top><A
href="
height=19
src="images/about.jpg" width=146 border=0></A></TD>
<TD vAlign=top><IMG height=19 src="images/spacer.gif"
width=3></TD><!-- CONTACT -->
<TD vAlign=top><A
href="
height=19 src="" width=146 border=0></A></TD>
<TD vAlign=top><IMG height=19 src="images/spacer.gif"
width=3></TD><!-- RIGHTHAND COLUMN -->
<TD vAlign=top width=204 background="" rowSpan=9><IMG height=1
src="images/spacer.gif" width=204><BR>dsf sdfsdf sdfsdf
sdfsd</TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=19></TD></TR>[/red]
<TR>
<TD vAlign=top colSpan=7><IMG height=3
src="images/spacer.gif" width=593></TD>
<TD vAlign=top><IMG height=3 src="images/spacer.gif"
width=3></TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=3></TD></TR>[/red]
<TR><!-- FOR INDUSTRY PROFESSIONALS -->
<TD vAlign=top width=147><A
href="
height=18 src="images/industry.jpg" width=147
border=0></A></TD>
<TD vAlign=top><IMG height=18 src="images/spacer.gif"
width=3></TD><!-- CONSUMERS -->
<TD vAlign=top><A
href="
height=18 src="images/consumers.jpg" width=145
border=0></A></TD>
<TD vAlign=top><IMG height=18 src="images/spacer.gif"
width=3></TD><!-- FOR HEALTHCARE PROFESSIONALS -->
<TD vAlign=top><A
href="
height=18
src="" width=146 border=0></A></TD>
<TD vAlign=top><IMG height=18 src="images/spacer.gif"
width=3></TD><!-- FOR PRESS -->
<TD vAlign=top><A
href="
height=18
src="images/press.jpg" width=146 border=0></A></TD>
<TD vAlign=top><IMG height=18 src="images/spacer.gif"
width=3></TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=18></TD></TR>[/red]
<TR>
<TD vAlign=top width=147><IMG height=3
src="images/spacer.gif" width=147></TD>
<TD vAlign=top><IMG height=3 src="images/spacer.gif"
width=3></TD>
<TD vAlign=top colSpan=5><IMG height=3
src="images/spacer.gif" width=443></TD>
<TD vAlign=top><IMG height=3 src="images/spacer.gif"
width=3></TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=3></TD></TR>[/red]
<TR><!-- HOME -->
<TD vAlign=top width=147><A
href="
height=18
src="images/home.jpg" width=147 border=0></A></TD>
<TD vAlign=top><IMG height=18 src="images/spacer.gif"
width=3></TD><!-- BLUE BAR -->
<TD vAlign=top colSpan=5><IMG height=18 src="images/bar.jpg"
width=443></TD>
<TD vAlign=top><IMG height=18 src="images/spacer.gif"
width=3></TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=18></TD></TR>[/red]
<TR>
<TD vAlign=top width=147><IMG height=3
src="images/spacer.gif" width=147></TD>
<TD vAlign=top><IMG height=3 src="images/spacer.gif"
width=3></TD>
<TD vAlign=top colSpan=5><IMG height=3
src="images/spacer.gif" width=443></TD>
<TD vAlign=top><IMG height=3 src="images/spacer.gif"
width=3></TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=3></TD></TR>[/red]
<TR vAlign=top><!--- PICTURE --->
<TD width=147 height=64><IMG height=64 src="images/picture.jpg" width=147></TD>
<TD vAlign=top rowSpan=3><IMG height=1 src="" width=3></TD><!-- BODY -->
<TD vAlign=top background="" colSpan=5 rowSpan=3><IMG height=500
src="images/spacer.gif" width=1> fgh dghdg dghdgghdgh</TD><!-- /END BODY -->
<TD vAlign=top rowSpan=3><IMG height=1 src="images/spacer.gif" width=3></TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=64></TD></TR>[/red]
<TR vAlign=top height=3 WIDTH="147">
<TD vAlign=top width=147 height=3><IMG height=3 src="images/spacer.gif" width=147 border=0></TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=3></TD></TR>[/red]
<TR><!-- LEFT COLUMN -->
<TD vAlign=top width=147 background="images/cyanmap.jpg">sdlfjlds sljdf sdlfj ssldkjf sljkfd</TD><!-- /END LEFT COLUMN -->
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=433></TD>[/red]
</TR><!-- BOTTOM BAR -->
<TR>
<TD colSpan=9><IMG height=23 src="images/bottom.jpg" width=800><BR>
<DIV align=center><!--- Site design by Checkerboard Internet Services, Inc. ---></DIV></TD>
[red] <TD><IMG SRC="images/spacer.gif" WIDTH=1 HEIGHT=23></TD></TR></TBODY></TABLE>[/red]