Forum Moderators: open
Just use structural markup to mark up the true structure of your document and apply styles to suggest a layout.
<h1>In other words, don't enclose a whole paragraph inside a heading tag like this one here. Not only does it look ugly and is a violation of the principles of markup, it will also be penalised by many search engines which will see this sort of thing as an attempt to fool them.</h1>
As for bold, underlined, italics, font size and so on: those are for presentational purposes only, and have no effect on how the SEs rank your pages. Overuse of any of these tags will make your page look amateurish and hard to read.
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