I"ve not used jqGrid myself, but it seems odd to have the script tag in the middle of the table. Why is it not in the head element, or at the bottom of the body, where script tags are usually placed?
It may have nothing at all to do with the problem (in fact, not likely), but it is odd.
Ummm, it's not valid to put it in the title tag either. it should either be in the head element or at the end of the body. In any case, I cannot answer your jqGrid question having never used it.