I have sent a support request to Andy, but I thought I should also ask here to share the problem and solution to others.
I try to setup a HTML format to jira users in a acknowledgement email and include a copy of their message with following setup:




I have detailed almost everything in the screenshots above.
Did I miss any other setting anywhere?
PS: I am running JIRA 6.1 and JEMH 1.5.3