OK!! I finally found the problem it was with a change made in the \includes\modules\YOUR_TEMPLATE\create_account php from the Captcha installation

Original create_account php from Captcha v. 2.9 11.08.2008
PHP Code:
// initial welcome
    
$email_text .=  EMAIL_WELCOME;
    
$html_msg['EMAIL_WELCOME'] = str_replace('\n','',EMAIL_WELCOME);

    if (
NEW_SIGNUP_DISCOUNT_COUPON != '' and NEW_SIGNUP_DISCOUNT_COUPON != '0') {
      
$coupon_id NEW_SIGNUP_DISCOUNT_COUPON;
      
$coupon $db->Execute("select * from " TABLE_COUPONS " where coupon_id = '" $coupon_id "'");
      
$coupon_desc $db->Execute("select coupon_description from " TABLE_COUPONS_DESCRIPTION " where coupon_id = '" $coupon_id "' and language_id = '" $_SESSION['languages_id'] . "'");
      
$db->Execute("insert into " TABLE_COUPON_EMAIL_TRACK " (coupon_id, customer_id_sent, sent_firstname, emailed_to, date_sent) values ('" $coupon_id ."', '0', 'Admin', '" $email_address "', now() )");

      
$text_coupon_help sprintf(TEXT_COUPON_HELP_DATEzen_date_short($coupon->fields['coupon_start_date']),zen_date_short($coupon->fields['coupon_expire_date']));

      
// if on, add in Discount Coupon explanation
      //        $email_text .= EMAIL_COUPON_INCENTIVE_HEADER .
      
$email_text .= "\n" EMAIL_COUPON_INCENTIVE_HEADER .
      (!empty(
$coupon_desc->fields['coupon_description']) ? $coupon_desc->fields['coupon_description'] . "\n\n" '') . $text_coupon_help  "\n\n" .
      
strip_tags(sprintf(EMAIL_COUPON_REDEEM' ' $coupon->fields['coupon_code'])) . EMAIL_SEPARATOR;

      
$html_msg['COUPON_TEXT_VOUCHER_IS'] = EMAIL_COUPON_INCENTIVE_HEADER ;
      
$html_msg['COUPON_DESCRIPTION']     = (!empty($coupon_desc->fields['coupon_description']) ? '<strong>' $coupon_desc->fields['coupon_description'] . '</strong>' '');
      
$html_msg['COUPON_TEXT_TO_REDEEM']  = str_replace("\n"''sprintf(EMAIL_COUPON_REDEEM''));
      
$html_msg['COUPON_CODE']  = $coupon->fields['coupon_code'] . $text_coupon_help;
    } 
//endif coupon 
Edited create_account php
PHP Code:
// initial welcome
    
$email_text .=  EMAIL_WELCOME;
    
$html_msg['EMAIL_WELCOME'] = str_replace('\n','',EMAIL_WELCOME);

    if (
NEW_SIGNUP_DISCOUNT_COUPON != '' and NEW_SIGNUP_DISCOUNT_COUPON != '0') {
      
$coupon_id NEW_SIGNUP_DISCOUNT_COUPON;
      
$coupon $db->Execute("select * from " TABLE_COUPONS " where coupon_id = '" $coupon_id "'");
      
$coupon_desc $db->Execute("select coupon_description from " TABLE_COUPONS_DESCRIPTION " where coupon_id = '" $coupon_id "' and language_id = '" $_SESSION['languages_id'] . "'");
      
$db->Execute("insert into " TABLE_COUPON_EMAIL_TRACK " (coupon_id, customer_id_sent, sent_firstname, emailed_to, date_sent) values ('" $coupon_id ."', '0', 'Admin', '" $email_address "', now() )");

// if on, add in Discount Coupon explanation
      //        $email_text .= EMAIL_COUPON_INCENTIVE_HEADER .
      
$email_text .= "\n" EMAIL_COUPON_INCENTIVE_HEADER .
      (!empty(
$coupon_desc->fields['coupon_description']) ? $coupon_desc->fields['coupon_description'] . "\n\n" '') .
      
strip_tags(sprintf(EMAIL_COUPON_REDEEM' ' $coupon->fields['coupon_code'])) . EMAIL_SEPARATOR;

      
$html_msg['COUPON_TEXT_VOUCHER_IS'] = EMAIL_COUPON_INCENTIVE_HEADER ;
      
$html_msg['COUPON_DESCRIPTION']     = (!empty($coupon_desc->fields['coupon_description']) ? '<strong>' $coupon_desc->fields['coupon_description'] . '</strong>' '');
      
$html_msg['COUPON_TEXT_TO_REDEEM']  = str_replace("\n"''sprintf(EMAIL_COUPON_REDEEM''));
      
$html_msg['COUPON_CODE']  = $coupon->fields['coupon_code'];
    } 
//endif coupon 
These are the lines I removed as this is what was making it show up in email.

Starting from top down:

PHP Code:
 $text_coupon_help  "\n\n" .


$text_coupon_help sprintf(TEXT_COUPON_HELP_DATEzen_date_short($coupon->fields['coupon_start_date']),zen_date_short($coupon->fields['coupon_expire_date']));


 . 
$text_coupon_help
I hope everyone can understand what I did and that it may help someone else if they have the problem after installing Captcha which by the way is a fantastic add-on

Kind Regards

Paul