What DigitalExpl0it said; I'd also suggest changing the query: if all you need is to see if it's there, you don't need to return the entire row.
$result = @mysql_query("SELECT COUNT(*) FROM nl_member WHERE email = \"$email\"");
$test = @mysql_fetch_row($result);
if($test[0] == 0) {
echo("\n| <a href='add_nl.php'>Join Newsletter</a>");
}
else {
echo("\n| <a href='remove_nl.php'>Quit Newsletter</a>");
}
Of course, if you're using anything from the $test array (gotcha!) further on, ignore this suggestion.