The problem is in your validation script only.,
Please refer the following location :
To see it in action http://jsbin.com/uwuqul/1/edit
I did three changes in your codings those are,
(1). I have changed the Validator Script
<script src="http://cdn.jquerytools.org/1.2.7/full/jquery.tools.min.js" type="text/javascript"></script>
(2). For Email validation, we need to change the type in email field,like
<input id="demo_email" name="demo_email" required="required" size="30" type="text" value="" novalidate/>
(to)
<input id="demo_email" name="demo_email" required="required" size="30" type="email" value="" novalidate/>
(3). Adding Style in validator script
jQuery(".edit_profile_form").validator({
position: 'top',
offset: [25, 10],
messageClass:'form-error',
message: '<div style="width:270px;"><em/></div>' // em element is the arrow
}).attr('novalidate', 'novalidate');
I think this may help you resolve your problems.