First, the "literally just started" situation is the first red flag. This almost always reflects something going wrong on the server.
Since you say your friend who runs the server claims to have changed, nothing, it could mean that any automatic server updates for spam rules might have triggered certain kinds of messages to go out differently than they did before, including stripping off portions of the email it doesn't like. Your hosting friend might not be aware of the changes, but he's the only one who can disable the auto-added rules, etc.
Another concept of "blacklisting" is a common cause of mail non-delivery; however, you're not saying emails aren't delivered. They're just not showing in HTML format. So, I rather doubt that blacklisting is your problem; however, it's worth checking whether your webserver is on any blacklists.
Next, if you claim you've not changed anything on the server, do a complete file-comparison between the server and your most recent "known to work properly" backup, looking for changes and additions and deletions of files and file-content.
Next, if you're convinced that the code on the server is identical to what it was when it was working properly, you can get yourself some proof that you're delivering HTML content to the mailserver (so your hosting friend will have to figure out why it's not delivering the HTML portion) by turning on email archiving. If you turn on email archiving, then all the content that was sent to the mailserver will be stored in the database, allowing you to see it in the format in which it was intended to be delivered. There's an email archive manager addon that lets you view the database content via your admin area too.
If you find the email archive records do have the HTML content archived, the problem is happening after the email leaves your server and gets onto the hosting company's mailserver.
If the email archive records do not contain HTML content, then somehow you've changed the email settings so that HTML content is no longer produced.
wlamoreaux:
Paypal order -> admin and customer get paypal email but no zencart email
I've also went to ipncheck and ipn main handler and i'm getting no errors.
What you describe suggests that either the PayPal server cannot talk to your server successfully, or your PayPal profile has IPN notifications disabled.
What's showing in the PayPal debug logs?
http://www.zen-cart.com/forum/showthread.php?t=61199
http://www.zen-cart.com/wiki/index.php/PayPal