In the following code I have a DropDownList decorated by the FormDecorator and it doesn't seem to be any problems:
Please check your projects for global CSS interfering with the DropDownList. In case the controls are created dynamically make sure they are recreated on every postback or they will not appear on the page.
Use FireBug or IE Dev Toolbar to inspect the page after the postback to see if any HTML is rendered by the DropDownList.