Most current email programs allow for the sending and receiving of HTML emails. These emails can be written using regular HTML to create emails that look just like webpages.
HTML email is used by many newsletter and email marketing companies. Most users respond better to a nice graphical email as it is as familar to the user as a webpage.
When creating HTML email be sure to use the most basic and stable html tags available. Don't add fancy features like javascript or flash as they are most often unreadable by email programs.