Index: js/Formatter.js
===================================================================
--- js/Formatter.js	(revision 2262)
+++ js/Formatter.js	(working copy)
@@ -159,14 +159,16 @@
 			w.nextMatch += lookaheadMatch[0].length;
 			var t;
 			if(listLevel > currLevel) {
-				for(t=currLevel; t<listLevel; t++)
-					stack.push(createTiddlyElement(stack[stack.length-1],listType));
+				for(t=currLevel; t<listLevel; t++){
+					var target = (currLevel==0)? stack[stack.length-1]:stack[stack.length-1].lastChild
+					stack.push(createTiddlyElement(target,listType));
+				}	
 			} else if(listLevel < currLevel) {
 				for(t=currLevel; t>listLevel; t--)
 					stack.pop();
 			} else if(listLevel == currLevel && listType != currType) {
 				stack.pop();
-				stack.push(createTiddlyElement(stack[stack.length-1],listType));
+				stack.push(createTiddlyElement(stack[stack.length-1].lastChild,listType));
 			}
 			currLevel = listLevel;
 			currType = listType;