Try taking out the code that is in the
#-------------------------------------------------------------
# Shell Prompt
#-------------------------------------------------------------
section of the .bashrc file. This looks to be the area that controls the appearance of the prompt.
What does your prompt look like now? If you don't notice a change, make sure you start a new Terminal window.
Beyond the .bashrc file in your home directory, there are system-wide configurations in the /etc/ folder. They are usually found in /etc/bashrc or /etc/bash_profile (note they are not hidden, no prepended .) depending on the flavour of Linux your are using.
Also - do you have any other .bash_profile or .profile like files in your home directory which might also be acting to configure the prompt?