Outlook Integration - inserts code on every line of email

Windows 7, Outlook 2013, Max 12
After domain migration to new exchange and recreating profile on this Win 7 wrkstn running Max 12 we get this weird error(only on this 'server' not on the 2 remote clients)
The email is fine in Outlook but in Max every HTML email has
d\plain
and every Rich Text has
d\sb280\plain\f0
inserted on EVERY line before the text, or space, as the case may be.
Even weirder the PREVIEW has on every line, but opening doesn't until it is sent THEN it gets embedded. Attached is a rich text email sent the replied to and opened

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