Outlook 2007 HTML will not word wrap

I have a major problem with Outlook 2007 HTML not word wrapping when i create a new email. It does wrap, but like after over 100 Chrs. I've uninstalled and reinstalled the office suite, but it does not fix it. it must be something in the personal settings when i imported them back in.

anyone have any answers for this.

BTW manual setting of wrap does not work. also when send email in plain text , it come up squares on the recipiants end.