Version:           1.7.1 (using KDE 3.3.0, SuSE)
Compiler:          gcc version 3.3.4 (pre 3.3.5 20040809)
OS:                Linux (x86_64) release 2.6.8-24.14-default

I seem to be experiencing the opposite problem as Bug 48392, i.e. saving a message as a draft causes newlines to be hard coded into the file, causing the autoformatting of edited drafts to be lost.  It is possible, but a nuisance, to remove the newlines and restore the intended formatting.

A possibly related issue is that when I try to send the finished draft, I cannot find a 'send' option in the message menu, but only a 'send again' option. The thought that my original version might have been already sent really scared me, but thankfully the message didn't appear in the 'sent' file.

Your response to bug 48392 suggests that the behavior I expected is the behavior you intended.  If there is a setting that I can change to correct this, I so far haven't found it. I wish that the retention of autoformatting in drafts was default behavior.