MS Outlook Formatting Problem

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I have Win XP, Office XP and having formatting issue with MS Outlook. I have setup "Computer in this message format" to "html" in Tools --> Options --> Mail format. I have an html signature which come out fine when I create a new message but when I reply to any existing message no matter which format they are in (mostly in html format), the format changes to plain text instead of html and the signature comes out all messed up as it clears formatting. How can I keep formatting to stays in html format for all new, forward and reply messages. Thanks
 
there are two sides to the issue;
formatting the message itself and
the receipients email client controls for reading.

To test your work, try setting Outlook to format as HTML
and setting Outlook Express(OE) to Read HTML.

Now send a message to yourself and ask OE to get messages manually until it arrives.

Once this works as you expect,
reset OE to plain text and see what the rest of the Internet may be seeing.
 
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