Outlook settings

A copy of the message (see below) was sent from one user using netscapte to the recepient using Outlook (2003) (both XP users).   I think the Outlook settings are incorrect since the email received looks like this.... (I've deleted email addresses etc.)

From:  
Sent: Wednesday, May 27, 2009 10:53 AM
Subject: GOLF WED. 6/3/09 EAST COURSE STARTING AT 10:20AM


Return-Path: <>
Received: from [64.18.0.51] (HELO psmtp.com)
  by fe1.hargray.com (CommuniGate Pro SMTP 5.2.3)
  with SMTP id 258708810; Wed, 27 May 2009 10:52:46 -0400
Received: from source ([216.200.145.38]) by exprod5mx255.postini.com
([64.18.4.10]) with SMTP;
      Wed, 27 May 2009 07:52:46 PDT
Received: from dm23.mta.everyone.net (sj1-slb03-gw2 [172.16.1.96])
      by omta0108.mta.everyone.net (Postfix) with ESMTP id CF616C3887C;
      Wed, 27 May 2009 07:52:42 -0700 (PDT)
X-Eon-Dm: dm23
Received: by resin11.mta.everyone.net (EON-PICKUP)
      id resin11.4a148beb.26972; Wed, 27 May 2009 07:52:42 -0700
MIME-Version: 1.0
Content-Type: text/html; charset="UTF-8"
Message-Id: <20090527075242.604671D9@resin11.mta.everyone.net>
Date: Wed, 27 May 2009 07:52:42 -0700
From: <>
Subject: GOLF  WED. 6/3/09  EAST COURSE STARTING AT 10:20AM
X-Eon-Sig: AQKfDTpKHVO6pQgKTgEAAAAB,1442b6cac9429641ee9360fb395f2bd9
X-Originating-Ip: [64.203.202.125]
To: undisclosed-recipients:;
X-pstn-neptune: 0/0/0.00/0
X-pstn-levels:     (S: 7.96879/99.90000 CV: 3.3556 FC:95.5390 LC:95.5390
R:95.9108 P:95.9108 M:97.0282 C:98.6951 )

<DIV style="font-family:Arial, sans-serif;
font-size:10pt;"><DIV><STRONG>GENTLEMEN:</STRONG></DIV>
<DIV><STRONG>WE HAVE FIVE TEE TIMES ON THE EAST STARTING AT 10:20AM.&nbsp;
IN SO FAR ARE:&.</STRONG></DIV> <DIV><STRONG>IF YOU
WANT TO PLAY, PLEASE E-MAIL ME AT:& <A
href="mailto:</A> OR CALL AT
.</STRONG></DIV> <DIV><STRONG></STRONG>&;</DIV>
<DIV><STRONG>BOB</STRONG></DIV><BR;<BR><HR>Netscape.&Just the Net You Need.</DIV>

Does this have something to do with Rich Text vs. HTML in Outlook?  Thanks for your help.