I was trying to help someone add a link to their signature in the Snow Leopard version of Mail.app. In testing some of the methods, I accidentally clicked Edit » Add Link while still editing the signature...and discovered that the 'insert link' box popped up. After pasting in a URL, saving the results, and sending myself a test message, I discovered the link stuck.
So, we apparently can now format not only font, size, and color (most of which I'd do in TextEdit or Word and paste in, simply because the editing is easier that way), but we can now apply links! Depending on your stance re: html mail, this may not be a good thing.
[robg adds: I tried this in the 10.5 version of Mail, and it didn't work -- although the menu item is active, the 'insert link' box won't appear while editing a signature.]
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