Index: /CKEditor/trunk/CHANGES.html
===================================================================
--- /CKEditor/trunk/CHANGES.html	(revision 6266)
+++ /CKEditor/trunk/CHANGES.html	(revision 6267)
@@ -54,4 +54,5 @@
 		<li><a href="http://dev.ckeditor.com/ticket/6868">#6868</a> : Partial (invalid) list structure crashes editor load.</li>
 		<li><a href="http://dev.ckeditor.com/ticket/6804">#6804</a> : Buggy behavior when editing &lt;legend&gt; inside &lt;fieldset&gt;.</li>
+		<li><a href="http://dev.ckeditor.com/ticket/6724">#6724</a> : [IE7] Nested list display bug in empty list item.</li>
 	</ul>
 	<h3>
Index: /CKEditor/trunk/_source/plugins/list/plugin.js
===================================================================
--- /CKEditor/trunk/_source/plugins/list/plugin.js	(revision 6266)
+++ /CKEditor/trunk/_source/plugins/list/plugin.js	(revision 6267)
@@ -104,4 +104,10 @@
 				{
 					var listData = CKEDITOR.plugins.list.arrayToList( listArray, null, currentIndex, paragraphMode );
+
+					// If the next block is an <li> with another list tree as the first
+					// child, we'll need to append a filler (<br>/NBSP) or the list item
+					// wouldn't be editable. (#6724)
+					if ( !currentListItem.getChildCount() && CKEDITOR.env.ie && !( doc.$.documentMode > 7 ))
+						currentListItem.append( doc.createText( '\xa0' ) );
 					currentListItem.append( listData.listNode );
 					currentIndex = listData.nextIndex;