No! you get only as far as the next <P> before you run into trouble.
A one-para list item is a degenerate case. And the 3.0 DTD requires
P, etc., now (thank goodness).
Any move from the browser-makers as to when we can expect support?
Right now even Arena does this for <ul><li><p>first item</p></li>
<li><p>second item</p></li></ul>:
*
first item
* second item
(I think)
///Peter