Have you tried this:
1). Open Outlook
2). Click the "Tools"
3). Select "Options"
4). Click on the "Mail Format" tab
5). Check to see which option is selected in the "Send in this message format" area, under the "message format" area.
Note that if you are only experiencing this problem when "Replying" to a received message, the format of the body of your reply is probably controlled by the 'mail format' of the sender. In other words, if the 'sender' used "ASCII" then your response will also be in ASCII.
Whenever I have this happen and desire to change the format I open a "new" message and cut/paste the sender's message into the body of the "new" message (the new message is either "Rich Text" or "HTML" and then I can control what I input/add in my reply. (There's probably a better/easier way to do this, but I haven't found it).
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