I have just installed Exchange 2007 and I am receiving delivery reports in some form of chinese text in outlook 2002;
It looks correct in OWA, if it's printed, forwarded, etc.
The exchange hub transport server sends the DSN messages in HTML format by default.
Changing it to send DSN's in text format will fix this issue.
powershell change this:
Get-TransportServer | Set-TransportServer –InternalDsnSendHtml $False
Exchange2007::Outlook XP::Delivery Status Notification Issue