Thanks, great suggestion.  The problem actually turned out to be that in Control Panel my daughter changed keyboards to a Japanese script one for a chatroom situation and forgot to change back.

I usually use Arial 10 but suddenly everything I write is in a primitive skinny font with squashed-up spacing.  I can't use the font button to change to any other font.  I have attached an image with the normal and weird fonts together.  I have used Pegasus since 1997 and I love it, this hasn't ever happened before.  I don't mess with Pegasus' settings, but I have obviously changed something important by accident. Regards, Bruce

One place to look is the "Disable all text styling options (never send styled mail)" option.  Make sure that it has not been enabled.  That option is located in Tools > Options > Outgoing mail > Message formatting.