As for line breaks, "\n". As for clickable links, you need to output the full url. Notifications are likely bring revisited in 1.9, so we'll se if anything better comes up then.

Otherwise, you can get your hands dirty with the current Elgg notification hooks that are available.

@stevedian : we think some plugin is available here for clickable links. its name is also similar to that.

@ Evan - thank you, but that line break did not work, it could be the html email mod perhaps.

Also for the clickable links in the emails, is this site not using its own script? Every email notification I receive has a clickable link...I'm a little confused 

@ Team Webgalli thank you but that mod only deals with messages received in the sites inbox, I need help with emails sent to peoples email accounts

Which mail service you are using? Almost all mail services identify the links and make them clickable automatically.

thanks...silly me, it was the html mail plugin causing the issue...at least I've narrowed it down haha sorry to have been a bother and thanks for the help