Any answers are greatly appreciated!!!
I think you need to report your bug. There seem to be a few template issues with cs5. If you scroll down the forum a bit to my template issue you will see what I mean.
One thing to note if you attempt JulesN's solution of moving the DIV tag inside the editable region... since this move is to a "non-template" area.. on many pages of your site it will simply mean the removal of the DIV tag outside the editable region. You will need to manually go into each page and add the DIV tag back into the editable region as Template updates do not modify the content of those regions.. I tried this today and had hundreds of pages instantly stop displaying correctly before I realized the logic behind it.. I was able to recover. However if you are using nested DIV tags as containers.. they are all either one big editable region or you need to wait till Adobe fixes this and use CS4 as I'm being forced to. I have submitted as a bug as well.