Index: /FCKeditor/trunk/editor/_source/classes/fckeditingarea.js
===================================================================
--- /FCKeditor/trunk/editor/_source/classes/fckeditingarea.js	(revision 1081)
+++ /FCKeditor/trunk/editor/_source/classes/fckeditingarea.js	(revision 1082)
@@ -311,10 +311,11 @@
 	var range = this.Document.selection.createRange() ;
 
-	// Only apply the fix when in a block and the block is empty.
+	// Only apply the fix when in a block, the block is empty, and we're not in a list item.
 	var parentNode = range.parentElement() ;
 
-	if ( ! ( parentNode.childNodes.length == 0 && ( 
-					FCKListsLib.BlockElements[parentNode.nodeName.toLowerCase()] || 
-					FCKListsLib.NonEmptyBlockElements[parentNode.nodeName.toLowerCase()] ) ) )
+	var parentTag = parentNode.nodeName.toLowerCase() ;
+	if ( ! ( parentNode.childNodes.length == 0 && parentTag != 'li' && ( 
+					FCKListsLib.BlockElements[parentTag] || 
+					FCKListsLib.NonEmptyBlockElements[parentTag] ) ) )
 		return ;