This set works for me... Quite similar to johnassis'
$headers .= "MIME-Version: 1.0\r\n";
$headers .= "Content-type: text/html; charset=iso-8859-1\r\n";
$headers .= "From: ".$myname." <".$myemail.">\r\n";
$headers .= "To: ".$contactname." <".$contactemail.">\r\n";
$headers .= "Reply-To: ".$myname." <$myreplyemail>\r\n";
$headers .= "X-Priority: 1\r\n";
$headers .= "X-MSMail-Priority: High\r\n";
$headers .= "X-Mailer: Just My Server";
BCC = blind carbon copy - doesn't show in the mail reader...