OSTicket Version: 1.7.0 (latest version when installed at the end of July, 2013)
Mail Sending: via SMTP server
PHP version: 5.3.16
Apache 2.x
Server OS: Linux (hosting provided via Webmasters.com)
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We're seeing improper email formatting for outgoing emails viewed within Microsoft Outlook. The mails formats properly when viewed via GMail.
Within Outlook, the emails lose all formatting and linebreaks, and just dumps as a big clump of text. (See screenshot attached)

On a side note, prior to using the SMTP server, I just made use of the PHP Sendmail method, and the OTHER "legacy" problem would occur, where the lines would wrap at a hard-set limit and insert the = sign at the end of each line, breaking the ticket link among other things.
I've scoured the forums and it would appear that this problem is supposed to be non-existant in 1.7.0, so I don't know where to start.