outlook 03 turns words to symbols when using reply or forward function

[plaehy]

I use MS XP Home edition on a desktop system.
Word 2003-ver:11.6113.57.3
Outlook 2003 ver: 11.5608.5703

I have run: McAfee virus scan, Spybot, Ad-Aware, Registry cleaner and outlook detect and repair. All systems appear clean.

Problem: Outlook and Word

Email format set as HTML- Word 2003 set as editor.

1. When I reply to or forward an email in outlook the recipients gets the email with all
the words transformed into ??? or squares.

2. The word wrap function isn’t working; at the end of the line the word gets split without hyphenation or separation.

3. The spell check reports “spell check complete” and words remain misspelled.