Sytem and module emails missing paragraph breaks

Core 6.14: Contact (email a User)
Theme: Wilderness
Mime Mail 6.x-1.0-alpha1

Token 6.x-1.12
Better Formats 6.x-1.1
Wysiwyg 6.x-2.0 (with TinyMCE)

Signup 6.x-1.0-rc6 (email Signed Up User)
Simplenews 6.x-1.0-rc6 (email a Subscriber List)
Simplenews Digest 6.x-1.x-dev
Content 6.x-2.5

I use MimeMail, so I can have HTML formatting (WYSIWYG Editor) available for SimpleNews.

All emails received from the web site have the paragraph breaks removed and all the lines run together. What settings do I need to change?

1. Input Format
   • Default: Filtered HTML
     • Name------------------Weight
     • URL filter---------------0
     • HTML filter-------------1
     • Line break converter----2
     • HTML corrector---------10
   • Full HTML
     • Name------------------Weight
     • URL filter------------------0
     • Table alternate row filter---10
2. MimeMail setting
   • Enable or Disable?
     Use mime mail for all messages
   • Enable or Disable?
     Use the mime mail module to deliver all site messages. With this option, system emails will have styles and formatting
   • Input Format
     Full HTML
     To allow WYSIWYG Editor with SimpleNews (email a Subscriber List)

Ashford