eNewsletter: Subscription selection and subscribe area formatting

Hello,

I've attached a screen shot first of the issue I want to correct, followed by a mock-up of what I'd like to accomplish.

If you visit http://quiltersbug.com you will see that there is a typical email/subscribe form for eNewsletter. It looks fine until a member is subscribed - then the formatting becomes poor visually as shown in my attached image.

Can we tighten up the formatting as in my mock-up?

Thanks for any help or insight.

James