>>>
http://validator.w3.org/check?uri=ht...w.phorm.com%2F
stylesheet validates too. welcome to the club!
>>> (Just don't look in the /register directory yet 
ok.
>>> The only problem is that my drop-caps sink. The first one on the page
>>> is properly lined up, but subsequent ones get lower and lower.
notice your font is larger than the line height. i think you have a
conflict between p:first-letter and your Cap:first-letter ID. just let
p:first-letter do the work for you and get rid of the Cap:first-letter.
remove the float from first-letter by using text-align:left in your content
ID.
THEN take all of your fonts out of px and take them to em. THEN you are
within a fair's breadth of taking it XHTML.