Fix Ordered / Unordered Lists in TinyMCE

I have spent my entire day today on this problem.

My conclusion is that it is a browser-based problem originating from the way 'insertOrderedList' is implemented in each browser. (also insertUnorderedlist) It works much better if it is rendered incorrectly

<ol>
<li> this is an item </li>
<ol><li>Sub item</li></ol>
</ol>

The above is treated correctly in mozilla, shift+tab works correctly, etc.
A properly formatted XHTML list does not format correctly.

Solutions I've considered:
--Use XHTML strict doc-type on the IFrame --no change
--Regular expression query to turn a properly formatted list into an improperly formatted list (goes against all intuition, but could work, as long as your formatted it back onSave)
--olympic grade re-parsing after catching certain key presses (tab, shift+tab, enter, backspace, delete) if you are inside a list (would suffer performance decreases) I'm not sure this would be able to completely override the browser default actions.

Anyway, I hope this helps.

The only other hopeful is that it is taken care of correctly in IE 8 and FF 3