I like how you guys, unlike forums such as Vbulletin, dont send emails for reported threads, spamming our mods mailboxes, but use the pm system. Could you guys just add an option that when used, automatically creates a pm folder in all admin and mods system that all reported post pmes go to, and does not count towards the quota? Kind of like the trash forum.
Or even better, could there be like a place they go to, kind of like a cp that has all the reported post tickets and the posts awaiting activation. pm

Look for a mod, it is definitely possible to do it much nicer.

PM's get emailed to the user though?

no, they are sent automatically.

When a user clicks on the report button the Report this post to a moderator. function shows the user, here I would want to make it customizable so that we can enter a message so that reporte sees that message before they click on Submit Report

@kirovul: edit the skin ;)

On my forums I get emails whenever a post is reported. It contains a link to the topic / post that was reported along with the user-supplied reason (if any).

IIRC this is an option in the admin CP?