I am also having a serious problem with wordpress that directly relates to this topic on 2.0.3 (php5).
edit: not sure how to post code correctly, assume the below is perfect XHTML for paragraph and links
When I input the following for example:
<div class="loca">
< p>< a title="some link title" href="/somelink/"><img alt="image desc" src="someimage.jpg" /></a></p>
< p>< a title="some link title" href="/somelink/">My link
Continues here</a></p>
</div>
HTML Source Looks exactly like this removing my perfect markup:
<div class="loca">< a title="some link title" href="/somelink/"><img alt="image desc" src="someimage.jpg" /></a></p>
< p><a title="some link title" href="/somelink/">My link
Continues here</a>
</div>
