Resolution: Yep, it's Entourage's HTML rendering engine. Ick. The HTML messages it creates aren't anywhere near valid markup. To call Entourage's HTML generation a subset of the HTML spec would be technically correct, but maybe a bit generous. :-)
I'm sure they had good reasons for this... The Entourage documentation mentions providing sufficient HTML support for "messaging" but not for creating "full websites." Whatever, it is what it is...
A suggestion for the SVN-Notify documentation: Consider adding a table of known good & bad e-mail client HTML rendering. At least in the context of SVN-Notify generated e-mail. If, for example, Entourage sucks, Outlook sucks less, and Thunderbird works great with svnnotify's e-mail, that would be good for future svnnotify users to know.
Thank you for the swift and helpful responses! I'm not going to try writing a filter for Entourage -- when Snow Leopard comes out, we might solve this by all of us switching to Mac Mail. (Assuming, that is, SL's Mac Mail doesn't have similar limitations.)
John