Reply format - How do I...?

[Tcs]

I'm used to, and like, seeing email replies/forwards with "> " preceding each
line. From what I can see, Outlook (2k3) *should* be able to do this. I've
gone into:

Tools | Options | Preferences | E-mail Options | On replies and forwards

and set:

When replying to a message
Prefix each line of the original message

When forwarding a message
Prefix each line of the original message

Prefix each line with
I've tried both just the character ">" and with a space "> ". Neither work.

Can't Outlook do this? If so, HOW?

Thanks in advance,

Tom