DropShadowExtender not attached to its panel

HELP PLEASE!!! I have put a DropShadowExtender on my login panel but when I run it, the dropshadow is completely detached from the panel itself! It is the correct size, shape, opacity, but the shadow is appearing a few inches down and to the right of the panel.

I've been banging on this for a WEEK and my head's about to explode.

1<asp:Content ID="Content1" ContentPlaceHolderID="ContentPlaceHolder1" Runat="Server">
2 <asp:ScriptManager ID="sm" runat="server" EnablePartialRendering="true" />
3 <asp:Panel ID="pnlLogin" runat="server" CssClass="LoginShadow">
4 <div style="padding:10px ; z-index:115">
5 User Name: <asp:TextBox ID="UserName" runat="server"></asp:TextBox><br />
6 Password: <asp:TextBox ID="Password" runat="server"></asp:TextBox><br />
7 <hr />
8
9 <asp:Button ID="LoginButton" runat="server" BackColor="#FFFBFF" BorderColor="#CCCCCC"10 BorderStyle="Solid" BorderWidth="1px" CommandName="Login" Font-Names="Verdana"11 Font-Size="0.8em" ForeColor="#284775" Text="Log In" ValidationGroup="Login"
12 OnClick="LoginButton2_Click">
13 </asp:Button>
14 </div>
15 </asp:Panel>
16 <ajaxToolkit:DropShadowExtender ID="dse1" runat="server"17 TargetControlID="pnlLogin"
18 Width="5"19 Rounded="true"20 Radius="6"21 Opacity=".7"22 TrackPosition="true"></ajaxToolkit:DropShadowExtender>
23</asp:Content>

What happens if you remove the HR tag? (Which forces line breaks...)