html mails not saved properly

Hi all
I have installed mailhandler and mailsave on my drupal install.
When i send an email with text, that works fine, but when i send an html mail, my bold text comes out as *boldtext*
similarly my inline images show up a [?] and i get an attachment to my node - which has the image.
Can you guide me on what needs to be done to fix this??
BTW - i m using Filtered HTML as the fomat in mailbox settings