Word of advice, Dreamweaver shouldn't be used for building websites -- TEMPLATES from a decade old copy of dreamweaver from before Adobe bought out Macromedia REALLY shouldn't be used for building websites.
It pretty much screams ancient WYSIWYG, and as such needs to be thrown out completely and started over from scratch. If that was written within the past ... eight years or so, I'd suggest the site owner sue the original developer for damages.
MikesBarto is entirely correct in his assessment -- salvaging that is near impossible and it needs to be pitched out completely and rewritten from scratch -- there is NOTHING worth saving there.
To make a laundry list of issues:
No doctype, browsers are in quirks mode.
HTML 3.2 style coding (hence the all-caps)
Tables for NOTHING
spacer.gif's doing padding's job.
Non-semantic markup and near total lack of content thanks to the use of images INSTEAD of text...
You mix in the annoying flashtard animation, crappy little stripe fixed width layout, text color contrasts below accessibility norms, scripting for nothing menu that's a total accessibility disaster...
Literally, it's a perfect example of what I mean when talking about "only thing you can learn from it is how NOT to build a website!".
To be brutally frank, throwing it away and redoing the whole thing from scratch would be FASTER than trying to save it!
Which IMHO is contradictory and impossible -- since starting from a PSD is putting the cart before the horse on design and the very beginning of that wonderful road to failure... Especially with all the "but I can do it in photoshop" IDIOCY that's out there these days. Any decent coder should be ignoring the PSD until after the HTML and layout is completed.