Looks like I might be wrong dumping word in outlook '07. Yet another reason not to upgrade.
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From everything I can find, Word is now the ONLY e-mail editor you can use and there is no way to turn it off and go back to the IE rendering engine.
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http://technologyinside.com/2007/01/...-2007-is-word/
Ugh. Sticking with Office 2000 or 2003 here.