Google Translate in Cherry Zen

I have the latest version of Zencart installed (1.3.9e) and changed to Zencart. When I installed Google Translate on Cherry Zen wierd things happen. Instead of showing the characters in the drop down in the Google Translate box it shows the html entity codes instead. What is puzzling is if I change to another template, this problem goes away.

Can someone look at http://agaresmedia.com/shop/, specifically at the Google Translate box in top left column and point me to a fix? Thanks in advance.

We are using this to go live with the new cart instead of the old cart we were using. This Google Translate is a big boon to the site but I have to get it to show the characters rather than the entity codes.

Disregard...appears to be a problem with browser cache corrupt or something.