Index: lib/simpletest/testweblib.php
===================================================================
RCS file: /cvsroot/moodle/moodle/lib/simpletest/testweblib.php,v
retrieving revision 1.6
diff -u -r1.6 testweblib.php
--- lib/simpletest/testweblib.php	9 Jun 2007 16:32:36 -0000	1.6
+++ lib/simpletest/testweblib.php	16 Jun 2008 13:49:19 -0000
@@ -40,5 +40,19 @@
     function test_s() {
           $this->assertEqual(s("This Breaks \" Strict"), "This Breaks " Strict"); 
     }
+    
+    function test_format_text_email() {
+        $this->assertEqual('This is a test',
+            format_text_email('<p>This is a <strong>test</strong></p>',FORMAT_HTML));
+        $this->assertEqual('This is a test',
+            format_text_email('<p class="frogs">This is a <strong class=\'fishes\'>test</strong></p>',FORMAT_HTML));
+        $this->assertEqual('& so is this',
+            format_text_email('<p>&amp; so is this</p>',FORMAT_HTML));
+        $tl = textlib_get_instance();
+        $this->assertEqual('Two bullets: '.$tl->code2utf8(8226).' '.$tl->code2utf8(8226),
+            format_text_email('<p>Two bullets: &#x2022; &#8226;</p>',FORMAT_HTML));
+        $this->assertEqual($tl->code2utf8(0x7fd2).$tl->code2utf8(0x7fd2),
+            format_text_email('<p>&#x7fd2;&#x7FD2;</p>',FORMAT_HTML));
+    }
 }
 ?>
Index: lib/weblib.php
===================================================================
RCS file: /cvsroot/moodle/moodle/lib/weblib.php,v
retrieving revision 1.970.2.90
diff -u -r1.970.2.90 weblib.php
--- lib/weblib.php	26 May 2008 11:47:00 -0000	1.970.2.90
+++ lib/weblib.php	16 Jun 2008 13:49:19 -0000
@@ -2231,7 +2231,13 @@
 
     require_once($CFG->libdir .'/html2text.php');
 
-    return html2text($html);
+    $result = html2text($html);
+    
+    // html2text does not fix numerical entities so handle those here.
+    $tl=textlib_get_instance();
+    $result = $tl->entities_to_utf8($result,false);
+    
+    return $result;
 }
 
 /**