When writing an email in Outlook 2007, the system seems to Auto-format itself, by zooming, or indenting the text

Problems with Outlook 2007 when writing/composing an email: Outlook seems to Auto-Format itself by zooming to a smaller font, or indenting the text, at the same time losing a letter of the text. For example, writing a b makes the text BOLD, etc.

The giveaway in your question was you saying that typing b makes the text bold because many applications, Outlook included, uses the keystroke shortcut Ctrl + B to bold text. I think you have a sticky Control key on your keyboard. Try lifting the key up gently to unstick it. You can also close Outlook and reopen it and try again to see if the problem is fixed. Sometimes the actual physical key isn't stuck down but the program behaves as if it were and restarting Windows too often cures the problem. If it persists, try another keyboard.