Well I have the same version as you do and it is there.
But after playing with some setting I see that the part you don't have was gone also.
You are not using HTML.
Go up to "Edit" and down to "preference".
Then pick on the leftside the + on "Mail and Newsgroups" and then highlight the "Formatting"
Now look on the right side.
Put a check in the very top box.
The pane below that put a check in the top box.
OK your way out.
Now it will ask you if you want to send HTML (rich text)email.
But if you open your Address book and click on any of the address and see the check box right below the nickname. Check that box.
Now open Messenger and do what I said.
Sorry I never had it without the setting above so I did not know the options don't show up.
See we all learn.
Also here is a link that you need to bookmark.
http://home.att.net/~cherokee67/index6.html
This is a great Netscape site and Ramona has a link to the forum she answer post at. She is great help if you ever need it.
By the way you will now see many other options.
Fonts, colors, background colors, images as background, tables etc. Just play around and see what all you can do.
Let me know how it works out.
P.S.
If you look at my screen shot you will see that I don't have the damn SHOP button too.
Here is what to do about that "Netscape 4.7 and that annoying SHOP button"
Add this line to your prefs.js file located in your user folder:
user_pref("browser.chrome.disableMyShopping", true);
Do it with 4.7 closed.Next time you start 4.7 the shopping
button will be gone.