Was able to fix this issue by moving the contextual inside the message div.

Index: app/views/messages/show.rhtml
===================================================================
--- app/views/messages/show.rhtml   (revision 2338)
+++ app/views/messages/show.rhtml   (working copy)
@@ -23,12 +23,12 @@
 
<%= l(:label_reply_plural) %>¶
 <% @replies.each do |message| %>
   ">
-  

-    <%= link_to_remote_if_authorized image_tag('comment.png'), { :url => {:action => 'quote', :id => message} }, :title => l(:button_quote) %>
-    <%= link_to(image_tag('edit.png'), {:action => 'edit', :id => message}, :title => l(:button_edit)) if message.editable_by?(User.current) %>
-    <%= link_to(image_tag('delete.png'), {:action => 'destroy', :id => message}, :method => :post, :confirm => l(:text_are_you_sure), :title => l(:button_delete)) if message.destroyable_by?(User.current) %>
-  
   

+    

+      <%= link_to_remote_if_authorized image_tag('comment.png'), { :url => {:action => 'quote', :id => message} }, :title => l(:button_quote) %>
+      <%= link_to(image_tag('edit.png'), {:action => 'edit', :id => message}, :title => l(:button_edit)) if message.editable_by?(User.current) %>
+      <%= link_to(image_tag('delete.png'), {:action => 'destroy', :id => message}, :method => :post, :confirm => l(:text_are_you_sure), :title => l(:button_delete)) if message.destroyable_by?(User.current) %>
+    
   
<%=h message.subject %> - <%= authoring message.created_on, message.author %>¶
   
<%= textilizable message, :content, :attachments => message.attachments %>
   <%= link_to_attachments message, :author => false %>
Index: public/stylesheets/application.css
===================================================================
--- public/stylesheets/application.css  (revision 2338)
+++ public/stylesheets/application.css  (working copy)
@@ -158,6 +158,7 @@
 }
 .contextual {float:right; white-space: nowrap; line-height:1.4em;margin-top:5px; padding-left: 10px; font-size:0.9em;}
 .contextual input {font-size:0.9em;}
+.message .contextual { margin-top: 0; }
 
 .splitcontentleft{float:left; width:49%;}
 .splitcontentright{float:right; width:49%;}