Londonpansy........I would definitely not start sobbbing just yet!! May I ask how long you have been trying for?
In the space of 8 months my husband has managed to get me pregnant with 6% and 1% morphology readings -- probably because, like your husband, his motility and volume numbers are good. Sadly I miscarried both times but that is for entirely separate reasons (I have bloodclotting issues which I now know I have to take baby aspirin for).
The kruger method to analyse sperm is extremely stringent and my doctor said that although the guidelines say men should have at least 15% healthy morphology, many men are lucky to even get a 9% reading!
The problem with sperm production is that it is a very complex process which requires about 5000 genes to create one swimmer! So you can imagine that it is very easy for one or two mutations to happen along the way which hamper the process and produce less than stellar sperm.
That being said, there is much that can be done in terms of lifestyle to help the process along. When my husband was given the 1% reading, I immediately booked him in to see a nutritional therapist. He has a highly stressful job, which requires a lot of travel and social dinners. I just had a feeling that he might need to cut back on the drinking, eat more veggies and take supplements to get his body back on track.
It has been three months since then and he is going back to test in two weeks (sperm production takes approx 100 days). I will let you know how it goes. But I wouldn't hesitate to get your husband on a more healthy regime in the meantime. This would mean cuttng back drastically on alcohol and cigarettes if he smokes. The therapist we went to see said beer was highly toxic to sperm (my husband wasn't too happy to hear that!) and that if he was going to drink occasionally, that he should stick to red wine). She also prescribed several antioxidant supplements and vitamins that have been shown to help improve morphology.
I would read the following two articles, the first one being written by one of New York's leading infertility specialists. I think it will make you feel much better....
infertilityblog.blogspot.com/2006/05/sperm-morphology-mythology.html
bjtoday.ynet.com/attachment.db?53976616
Please hang in there!!