Well, after much research and a lot of trial and error, I was able to resolve my problem and wanted to share it with all of you.
As you can see from the screen shot, the stock Android email client was allowing Exchange 2010 to insert a green arrow whenever I forwarded or replied to a message. This, in turn, would cause the messages to display incorrectly because the green arrow wouldn't properly resize the message and the separator line and would cutoff the recipients name. Because I am slightly neurotic about this stuff, it bothered me greatly and I needed to take action. This never happened using Exchange 2007. Well folks, here's what I learned:
1. This issue only started after I upgraded to Exchange 2010; it was not present in Exchange 2007.
2. From what I can tell, there is a feature in Exchange 2010 which pushes down an outlook feature called EAS (Exchange Archiving System). Now, this feature is available in other versions of Exchange, but didn't cause a problem in the Android client until Exchange 2010.
3. A subset of EAS is the reporting of forwarded or replied to messages via a green arrow displayed in the inbox. The stock Android email client is unable to render the arrow correctly, and thus causes the messages to display incorrectly.
4. I don't know why this wasn't an issue in 2007. All I can think of is that the flagging / reporting feature of EAS (the subset which shows the arrow) was either disabled or not functioning correctly.
Resolution:
Since I wasn't going to revert back to Exchange 2007, and the stock Android client was unable to display the messages correctly, I purchased a third party email client which can handle Exchange 2010 email much better.
I purchased and installed Enhanced Email. This email client has a lot of robust features and is able to interact with Exchange 2010 much better than the stock Android email client. Remember, I'm running a non-rooted AT&T SGSII Skyrocket ver 2.3.6.
After installing and configuring Enhanced Email, the problem was resolved. It's unfortunate that I had to purchase a third party program to perform something so basic, but it's what worked. Hopefully, this problem will be resolved with ICS (If we ever get the official AT&T release).