Index: smtp.module
===================================================================
--- smtp.module	(revision 135)
+++ smtp.module	(working copy)
@@ -428,7 +428,16 @@
       case 'reply-to':
         // Only add a "reply-to" if it's not the same as "return-path".
         if ($value != $headers['Return-Path']) {
-          $mail->AddReplyTo($value);
+          if (strpos($value, ' <') !== FALSE) {
+            $replytoparts = explode(' <', $value);
+            $replytoname = $replytoparts[0];
+            $replytoaddr = rtrim($replytoparts[1], '>');
+          }
+          else {
+            $replytoname = '';
+            $replytoaddr = $value;
+          }
+          $mail->AddReplyTo($replytoaddr, $replytoname);
         }
         break;