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You've seen things like %23 in a URL, right? It's a way of representing a literal '#' without having any special meaning like a # normally does.
The quoted-printable transfer encoding is the same, except is uses a '=' instead of a '%'. Thus when you put a
No, not really. 7bit means that each character should have the eighth bit as zero, but that doesn't happen with UTF-8. There is an 8bit encoding but it's not handled everywhere: quoted-printable is best.
I think mail() will handle all the dirty work for you, with regards to transfer encoding and the like. Send yourself an email (with only the Content-Type specified in your code) and see what the headers are.