Nested list items are not converted correctly

[brianto]

Given the list:

 -  Root
     +  Node
     +  Node
 -  Root

the parser wraps a <p> tag around the two root nodes. However, there is no blank line in the list, so there should not be a paragraph tag on the word "Root".

Here is maruku's output:

<ul>
<li>
<p>Root</p>

<ul>
<li>Node</li>

<li>Node</li>
</ul>
</li>

<li>
<p>Root</p>
</li>
</ul>

...and here is rdiscount's output:

<ul>
<li>Root

<ul>
<li>Node</li>
<li>Node</li>
</ul>
</li>
<li>Root</li>
</ul>

[tysonmote]

Ran into the same issue with:

* test
    * test 2

[kitofr]

+1

[sukima]

+1

[xoner]

+1

[ericanderson]

+1

[bhollis]

I've added a pending test that covers this problem.