Vista - red subject text and a red security shield instead of envelope

i have recieved an email with red text and a red windows security center
shield instead of an envelope this is the second one i deleted the first
when i select the email the reply and reply all are greyed out but forward
is still there also i do not have watch on as this is the first thing i
checked

any ideas ??

I take it your using Windows Mail, if you are then what you are describing is highlighting a Phishing email, obviously you don't want to be replying to it, hence the reply is greyed out. I guess forward is avaliable so you can forward it on to report it though to who I don't know.
The first time Windows Mail downloads what it suspects to be a Phishing mail it should of popped up a box explaining what it's doing and what you would like to do with future ones.
If you go to Tools and then Junk E-Mail options, the final tab is for Phishing and you can select there what you want it to do with them.

Hope this helps