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For those of you with the endless loop issue, there is a thread here http://forums.appthemes.com/report-classipress-bugs/membership-pack-mess-cp3-3-a-52032/#post241924 pertaining that issue, please...

As soon as I hear anything, I will update this thread...

I played around and this is the result: http://myclassipress.com/2013/04/build-your-own-report-this-ad-function-to-your-classipress/

Hope you like it.

Cheers

I can confirm. Not even line breaks are allowed in custom forms. All html tags will be suppressed.
This has already been submitted to the ideas exchange but hasn't been considered yet...