Issue with rich text formatting in Mail.app

[Ekim Neems]

Hey all,

So I noticed this problem started happening in Snow Leopard a couple of weeks ago, and I figured upgrading to Lion would fix it but it didn't. Here's what's happening.

When composing (either a new message or by replying), using shortcuts like Cmd+I or B is not changing text to italic or bold. If I click the "A" icon (in Lion) to show the formatting bar, it's not working either. In fact, I can't even change fonts either. However, if I go to Format -> Show Fonts and change it from the old style font menu, it works, but only if I'm highlighting existing text.

I checked in preferences and Rich Text is selected under the Composing menu. Any ideas? Thanks!