The Red Herring form appears at "loop_start". This should be in the body of your page.
Your theme template is reading the loop in the header, which I don't think is the correct way to do things. I can think of reasons to do this, but I can't, off the top of my head, think of a way to display the form inside the body if someone starts the loop before the body.
Perhaps there is another hook that I can use. I will look into this.
Although W3C shows a validation error, the page should display correctly. The validation error is annoying, though.