HTML Appearing as text

This has been posted on mimemail too

I have upgraded to rc4 and Drupal 6.9 followed the install instructions, uninstalled the re-installed but I can only get plain text replacement chars where the formatting should be. Can anyone think what this could be?

• Drupal 6.9
• Mimemail 6.x-1.x-dev (2008-Sep-22)
• Simplenews 6.x-1.0-rc4
• Installed OK and ran update with no errors
• Newsletter uses HTML (Full HTML)
• Newsletter content type 'Newsletter'
• mimemail set for all HTML messages (Full HTML)
• Testing carried out as admin user
• Created a newsletter issue using fckeditor, saved and displays OK.
• Selected option to send one test newsletter
• Email sent OK
• Content arrives in plain text with hyphens/chars replacing HTML formatting
• Hyperlinks are embedded in plain text OK
• Ordered lists appearing with asterisks in front

e.g. sample output

-------- TESTING SIMPLENEWS - MIMEMAIL ---------------------------------------
 
-------- WHAT DO WE MEAN BY CONTENT MANAGEMENT? ------------------------------
 
Allows you to update the pages of your website whenever you feel like it.

Phil