There's a problem with the security code. You can only type 5 letters and the picture shows 6 letters.
Look for this string name="CAPTCHA" value="" size="10" maxlength="5" Code (markup): in the submit.php file. (not sure about the filename, but if not submit.php, you should find some equivalent in the template folder)
Thanks Guys. Hey i'm a bit of a noob to this so excuse me if this is a stupid question.. what do you mean by needing seo friendly urls? and how do i get em?