There's also some other strangeness going on.
Make a list. Press return twice so your list looks like this:
Code:
• one
• two
• three
non-list item
Now go to list item 3 and press return. You list now looks like this:
Code:
• one
• two
• three
•
•
• non-list item
I don't know if Panther TextEdit did this or not. Anyone running 10.3 wanna check?