I have the same issue. HTC Desire and email from Exchange 2007 with ActiveSync. I think it does look bad. It shows the font on the Desire screen as Arial or whatever you are replying to, but when you reply and someone replies back you can see the Times New Roman font has been happily chosen for you and for your text only. It looks crap in fact and makes it look like I am using a 15 year old email client that is confused by the concept of fonts. Yes I know what you are thinking, but it's 2010 so it's not too much to expect an email to look at least partially legible and not like dot matrix print. I think the Jesus Phone may have a tendency to do the same thing in certain conditions, so it may be an ActiveSync thing.