The last version of PHP seems to break the current Textile module for Drupal. I also experienced the bug – OLs and LIs suddenly doesn’t work as expected, and later I also discovered that one of my page also suffer from the blank page bug . Dreamhost issue (also this one which is basically the same) and the bug I experienced, apparently have the same root of evil: the core Textile module.
I don’t really think that TextilePHP, the code base this module is using is maintained anymore. Instead, the Textile implementation of Treshold State seems to be much better (if it is maintained at all). I tweaked around a bit to integrate it to textile.module (throwing out the original TextilePHP), tested it, and boom – bugs went nowhere! Hooray! Read more »