Index: /CKEditor/trunk/_source/plugins/list/plugin.js
===================================================================
--- /CKEditor/trunk/_source/plugins/list/plugin.js	(revision 7423)
+++ /CKEditor/trunk/_source/plugins/list/plugin.js	(revision 7424)
@@ -153,5 +153,6 @@
 					// apply the proper text direction.
 					var dirLoose = item.grandparent.getDirection( 1 ) != orgDir,
-						enterBr = paragraphMode == CKEDITOR.ENTER_BR,
+						needsBlock = currentListItem.type == CKEDITOR.NODE_DOCUMENT_FRAGMENT &&
+									 paragraphMode != CKEDITOR.ENTER_BR,
 						li = item.element,
 						className = li.getAttribute( 'class' ),
@@ -172,5 +173,5 @@
 							className && child.addClass( className );
 						}
-						else if ( dirLoose || !enterBr || style || className )
+						else if ( dirLoose || needsBlock || style || className )
 						{
 							// Establish new block to hold text direction and styles.