I am experiencing the same problem (no formatting for the last 24 hours or so) with WordPress 2.9.2 and a MySQK 5.0 database on GoDaddy paid hosting. I see the problem on both Firefox 3.6.3 (latest) Mac and Safaru Version 4.0.5 (6531.22.7) Mac (latest). Macintosh is Finder version 10.6.4. (Snow Leopard)
After reading the comments above, I have queued the patch that exists on the GoDaddy site, since that worked for McCherney. (Nervously!)
I will let you know if it works.