Replying or forwarding email in html

I have win XP Pro and Office XP OEM. My Outlook is set up to send email as HTML. However when I reply or forward an email it changes to plain text. If I change it to html or rft the hyperlinks etc do not come back. In win98 it was easy to changethe option for replies but I cannot find it in Outlook xp. perhaps it is a security thing. ??? Please tell me where it is.