On the first tab "Contact" of the contact edit dialogue, there are two options:

Prefers to receive messages formatted as:     (dropdown list)
Allow remote content    (checkbox)

It is not immediately clear what these options refer to, or that they are related.  Also, the wording of the first option implies that this contact wants to *receive* messages in the specified format, i.e. messages composed and *sent* by the KDEPIM user.  This is not ther way that the option works:  the only place where this option is used (kdepim/messageviewer/header) controls the display of messages *received from* this contact.  Possibly this is the source of the user confusion in bug 260354.

Suggest that these options should be shown as related by a group box (maybe titled "Messages"), and their labels should say:

Show messages received from this contact as:   (dropdown list)
Allow remote content in received HTML messages   (checkbox)

It's not clear what the "Unknown" option in the dropdown list means, so this should maybe say "Default" (i.e. as configured in Kmail - Security).

This group box would also be a suitable place to add a per-contact option for *sending* HTML mail, if that is ever implemented (with the same dropdown options "Default", "Plain Text" or "HTML").