Aparently, encoding japanese emails is somewhat challenging, which I am slowly discovering myself. In case there are any experts (even those with limited experience will do)
Here's what I use to send Japanese emails. Subject line looks fine in Outlook 2010, gmail and on iPhone.
Encoding encoding = Encoding.GetEncoding("iso-2022-jp");
byte[] bytes = encoding.GetBytes(subject);
string uuEncoded = Convert.ToBase64String(bytes);
subject = "=?iso-2022-jp?B?" + uuEncoded + "?=";
// not sure this is actually necessary...
mailMessage.SubjectEncoding = Encoding.GetEncoding("iso-2022-jp");