With the help of a friend, I fiqured it out!
Since i code in HomeSite and then paste it into the Movable Type text entry fields, I inadvertenly copied the HTML code with out the
tags.
The solutions was simply changing my index page code to:
CODE
<MTEntries>
<$MTEntryTrackbackData$>
<MTDateHeader>
<div class="date">
<$MTEntryDate format="%B %d, %Y"$>
</div>
</MTDateHeader>
<div class="blogbody">
<a name="<$MTEntryID pad="1"$>"></a>
<span class="title"><$MTEntryTitle$></span>
<$MTEntryBody$>
<MTEntryIfExtended>
<span class="extended"><a href="<$MTEntryLink$>#<$MTEntryID pad="1"$>">MORE...</a></span><br />
</MTEntryIfExtended>
<div class="posted">Posted by <$MTEntryAuthor$> at <a href="<$MTEntryLink$>#<$MTEntryID pad="1"$>"><$MTEntryDate format="%I:%M %p"$></a>
<MTEntryIfAllowComments>
| <a href="<$MTCGIPath$>mt-comments.cgi?entry_id=<$MTEntryID$>" onclick="OpenComments(this.href); return false">Comments (<$MTEntryCommentCount$>)</a>
</MTEntryIfAllowComments>
<MTEntryIfAllowPings>
| <a href="<$MTCGIPath$>mt-tb.cgi?__mode=view&entry_id=<$MTEntryID$>" onclick="OpenTrackback(this.href); return false">Trackback (<$MTEntryTrackbackCount$>)</a>
</MTEntryIfAllowPings>
</div>
</div>
</MTEntries>