Change Formating

Hi, I have a couple of questions about setting up my 2007 Vista Live Windows
Mail. (Please excuse my newbie non-professional terminolgy) It's defaulting
to Unicode (UTE-8) although I've chosed Western... ? Also, when I compose I
like to change Font Colour, Highlight and other.. that I'm able to do in
Outlook 2003. I can't find these options or ability to add it to the bar
above the compose box. Is there a set-up screen I've missed for all these
options?

thanks