The formatting for the alert  email is stored in an XML file called
AlertTemplates.xml in the Template/XML subdirectory of the 12 hive on the
file server for both WSS and MOSS. That file is used by the whole farm.
Since you are in a hosting environment you won't have the ability to make
changes to the format  of the alert messages.

Yes, I have discovered that after an extensive search. But is there not
something that I CAN do about it? Some javascript, perhaps to insert in a CEWP?

The problem is that the client is only involved when you subscribe to an
alert. The alert  emails themselves are generated completely on the server
so there isn't anywhere to put a CEWP with javascript to change  the
formatting. You simply can't change the formatting of the alert emails
without either editing XML on the server or custom server side code.

The only possible option is to build a custom handler on your exchange server
that catches these emails  and edits the content at that level. Nothing to do
with Sharepoint.

Using a WSS hosted solution so I doubt he has access to
an exchange server to put custom code on either.

Actually, that could be an idea, at least somewhat so. I have an email  service
that comes with my host's providing package. I have there created an email
called "Group1" which, when an email is sent to that address it automatically
forwards that email. Since wss3  cannot send alerts to an entire group, then I
sign up this email address to receive  an alert  and so the group receives the
mail that way. Since the email server is not connected to the www, no www mail
can get in, but my domain mail  (which the wss shares) can get in.

So, it might be possible to catch and change  the emails  sent to that email
server and restucture them that way. In this manner, mr dabass, I think you are
right, it wouldn't have anything to do with sharepoint. And since my wss plan
does not allow me to change the xml file, then perhaps this is an option for me.

You could get slick and develop a WF that adds the person to a list. If they
want to receive  alerts they would add  themselves to a list of email  addresses
that gets alerted to any change  in the other lists. You wouldn't be subscribing
to the list itself, but you would be asking to have emails  generated for
anything that is new or that changes...

Not sure if that even made sense, but it could be done. Then you can design the
email in whatever way you want - client email server allowing, that is.