Broken Bullet Lists? Here’s why, and how to fix it.

There is a bug in WordPress 3.2.1 that when “WordPress should correct invalidly nested XHTML automatically” is enabled causes the HTML of bullet lists to become jumbled. To fix this, disable “WordPress should correct invalidly nested XHTML automatically” in Settings>Writing of your WordPress dashboard.

This option should be left on, but for now you will have to disable it to use bullet lists in your posts and pages. I will post an update when this has been fixed.

The bug has been filed at: http://core.trac.wordpress.org/ticket/18312