Flash-PHP form variables problem

I have a form in flash that uses loadVariablesNum("form.php", 0, "POST"); to send the information to a PHP file, which in turn sends it to a specified email. (I've tried with objects and sendAndLoad also, but same result).

This form is really simple. The problem is that the text in the recieved email does not handle any text formating such as the return (next line). Additionally, foreign characters typed in the form comes back as strange symbols in the email.

Example form input:
This is
a test message.
Foreign chars æøå

comes back in the email as:
This is a test message.Foreign chars æøå

How can this be fixed?
You can view the form at URL

the send button has the following source code:
on (release) {
if (name == "" || message == "" || email == "") {
err.text = "Please fill in all fields";
stop();
}
else if(email.indexOf("@")==-1){
err.text = "Email address is invalid"
stop();
}
else {
loadVariablesNum("form.php", 0, "POST");
gotoAndStop(2);
}
}

the php code is as follows:
<?

$to = "youremail@domain.com";
$msg = "$name\n\n";
$msg .= "$message\n\n";
$mailheader = "From: $email\n\n";

mail($to, $subject, $msg, $mailheader);

?>