Thanks Martin.

Interesting that they are editable via the template editor without first moving to a mailbox, at least they are in my testing.  I guess in a multi-user lan environment users would prevented from modifying them by permissions restrictions to the Pegasus Mail executable directory.

cookie, new mail template files have a .PM5 extension, reply template files are .PM6.

How can I change the email addresses in templates? Our office has two templates used by all users but staffing has changed and we need to remove some addressees and add some others. How can I do this? I cannot find anything about templates in the help section of the software. 

Templates are accessed via Tools > Template editor but these are the templates for that Pegasus Mail user.  You give the impression that you have system wide templates which I'm not familiar with.  Post back with more info (like how you invoke a template) if the template editor does not help.

From the Help file on Templates: -->

Template files can be located in your home mailbox directory, or may be placed in the same directory as the Pegasus Mail executable program, in which case they become system-wide 

Martin