What does the text version of the email template content show? Click the Text tab when editing the email template.
Also, check the welcome email content for the Package. Under Packages > Edit, Welcome Email section. If there is an invalid tag in use, or some other error in the HTML or Text section, it may be causing an error.
You can check your logs at ../logs_blesta/ (Defined under Settings > System > General) to see if any errors are written at the time the service is provisioned and the email would be sent. If there is an invalid tag or invalid logic in the template, something should be written to the logs.
Most likely the issue would be related to the welcome email content on the Package, especially if you haven't modified the Service Creation template (most don't change this much or often).