Index: wp-includes/pluggable.php
===================================================================
--- wp-includes/pluggable.php	(revision 17420)
+++ wp-includes/pluggable.php	(working copy)
@@ -1028,6 +1028,7 @@
 	// The blogname option is escaped with esc_html on the way into the database in sanitize_option
 	// we want to reverse this for the plain text arena of emails.
 	$blogname = wp_specialchars_decode(get_option('blogname'), ENT_QUOTES);
+	$comment_content = wp_specialchars_decode( $comment->comment_content );
 
 	if ( empty( $comment_type ) ) $comment_type = 'comment';
 
@@ -1038,7 +1039,7 @@
 		$notify_message .= sprintf( __('E-mail : %s'), $comment->comment_author_email ) . "\r\n";
 		$notify_message .= sprintf( __('URL    : %s'), $comment->comment_author_url ) . "\r\n";
 		$notify_message .= sprintf( __('Whois  : http://whois.arin.net/rest/ip/%s'), $comment->comment_author_IP ) . "\r\n";
-		$notify_message .= __('Comment: ') . "\r\n" . $comment->comment_content . "\r\n\r\n";
+		$notify_message .= __('Comment: ') . "\r\n" . $comment_content . "\r\n\r\n";
 		$notify_message .= __('You can see all comments on this post here: ') . "\r\n";
 		/* translators: 1: blog name, 2: post title */
 		$subject = sprintf( __('[%1$s] Comment: "%2$s"'), $blogname, $post->post_title );
@@ -1047,7 +1048,7 @@
 		/* translators: 1: website name, 2: author IP, 3: author domain */
 		$notify_message .= sprintf( __('Website: %1$s (IP: %2$s , %3$s)'), $comment->comment_author, $comment->comment_author_IP, $comment_author_domain ) . "\r\n";
 		$notify_message .= sprintf( __('URL    : %s'), $comment->comment_author_url ) . "\r\n";
-		$notify_message .= __('Excerpt: ') . "\r\n" . $comment->comment_content . "\r\n\r\n";
+		$notify_message .= __('Excerpt: ') . "\r\n" . $comment_content . "\r\n\r\n";
 		$notify_message .= __('You can see all trackbacks on this post here: ') . "\r\n";
 		/* translators: 1: blog name, 2: post title */
 		$subject = sprintf( __('[%1$s] Trackback: "%2$s"'), $blogname, $post->post_title );
@@ -1056,7 +1057,7 @@
 		/* translators: 1: comment author, 2: author IP, 3: author domain */
 		$notify_message .= sprintf( __('Website: %1$s (IP: %2$s , %3$s)'), $comment->comment_author, $comment->comment_author_IP, $comment_author_domain ) . "\r\n";
 		$notify_message .= sprintf( __('URL    : %s'), $comment->comment_author_url ) . "\r\n";
-		$notify_message .= __('Excerpt: ') . "\r\n" . sprintf('[...] %s [...]', $comment->comment_content ) . "\r\n\r\n";
+		$notify_message .= __('Excerpt: ') . "\r\n" . sprintf('[...] %s [...]', $comment_content ) . "\r\n\r\n";
 		$notify_message .= __('You can see all pingbacks on this post here: ') . "\r\n";
 		/* translators: 1: blog name, 2: post title */
 		$subject = sprintf( __('[%1$s] Pingback: "%2$s"'), $blogname, $post->post_title );
@@ -1127,6 +1128,7 @@
 	// The blogname option is escaped with esc_html on the way into the database in sanitize_option
 	// we want to reverse this for the plain text arena of emails.
 	$blogname = wp_specialchars_decode(get_option('blogname'), ENT_QUOTES);
+	$comment_content = wp_specialchars_decode( $comment->comment_content );
 
 	switch ($comment->comment_type)
 	{
@@ -1135,14 +1137,14 @@
 			$notify_message .= get_permalink($comment->comment_post_ID) . "\r\n\r\n";
 			$notify_message .= sprintf( __('Website : %1$s (IP: %2$s , %3$s)'), $comment->comment_author, $comment->comment_author_IP, $comment_author_domain ) . "\r\n";
 			$notify_message .= sprintf( __('URL    : %s'), $comment->comment_author_url ) . "\r\n";
-			$notify_message .= __('Trackback excerpt: ') . "\r\n" . $comment->comment_content . "\r\n\r\n";
+			$notify_message .= __('Trackback excerpt: ') . "\r\n" . $comment_content . "\r\n\r\n";
 			break;
 		case 'pingback':
 			$notify_message  = sprintf( __('A new pingback on the post "%s" is waiting for your approval'), $post->post_title ) . "\r\n";
 			$notify_message .= get_permalink($comment->comment_post_ID) . "\r\n\r\n";
 			$notify_message .= sprintf( __('Website : %1$s (IP: %2$s , %3$s)'), $comment->comment_author, $comment->comment_author_IP, $comment_author_domain ) . "\r\n";
 			$notify_message .= sprintf( __('URL    : %s'), $comment->comment_author_url ) . "\r\n";
-			$notify_message .= __('Pingback excerpt: ') . "\r\n" . $comment->comment_content . "\r\n\r\n";
+			$notify_message .= __('Pingback excerpt: ') . "\r\n" . $comment_content . "\r\n\r\n";
 			break;
 		default: //Comments
 			$notify_message  = sprintf( __('A new comment on the post "%s" is waiting for your approval'), $post->post_title ) . "\r\n";
@@ -1151,7 +1153,7 @@
 			$notify_message .= sprintf( __('E-mail : %s'), $comment->comment_author_email ) . "\r\n";
 			$notify_message .= sprintf( __('URL    : %s'), $comment->comment_author_url ) . "\r\n";
 			$notify_message .= sprintf( __('Whois  : http://whois.arin.net/rest/ip/%s'), $comment->comment_author_IP ) . "\r\n";
-			$notify_message .= __('Comment: ') . "\r\n" . $comment->comment_content . "\r\n\r\n";
+			$notify_message .= __('Comment: ') . "\r\n" . $comment_content . "\r\n\r\n";
 			break;
 	}