The setting for the individual recipient has no effect on the format of the message that the sender sees. Think about it: You might have an HTML message that you want to send to multiple recipients, but have half of them get it in plain text.
What the recipient gets will be plain text. You can test this, of course, simply by sending yourself a message using that technique.
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Sue Mosher, Outlook MVP
Author of Configuring Microsoft Outlook 2003
and Microsoft Outlook Programming - Jumpstart for
Administrators, Power Users, and Developers