XML Validation is solved by removing the ul tags after upload, in default.php

and one more step. division id lostpass is redundant for both name and pass. so simply rename second div id lostpass to lostname.

Tested it on my sight and validates fine.

This is my very first joomla site and my very first addon. I think you guys have done tremendous job!

Also I downloaded the modified php to my desktop should any one want it. Cheers!