Eudora is beginning to show its age.
It appears that Services no longer work in Eudora under Snow Leopard.
While it is possible there is a bug in Snow Leopard, more likely is
that the Service implementation in Carbon-based Eudora isn't robust
enough to continue to be supported under Snow Leopard.
Luckily, folks can continue to use the contextual menu module and app-
specific plugin.
The Penelope project (ie. Thunderbird with a Eudora shim) isn't a
solution right now. I am hoping that with OS X Services now receiving
more attention, the Firefox/Penelope folks will finally add support
for Services, which would allow for integration of TextSoap into those
apps.
One alternative solution to check out is Mailsmith.
Now offered free at <
http://www.mailsmith.org>, you'll have a great
Mail application that integrates nicely with TextSoap.
It uses the familiar BBEdit/TextWrangler text editor underneath to
compose messages.