WP Editor in Upload Form Won't Format Text

I am using version 3.8 of classyfrieds and am finding that the wp editor within the upload form won’t submit any formatting on the text.

I am using the most recent version of the standard WP theme: twenty twelve.

You can see a test classyfrieds listing here where I tried to format text via the WP editor in the upload form:
http://wp1.smallworks.ca/rentals/classyfrieds/another-text-input-test/

And a test here of a simple page test using the formatting to know that it is working within this theme and install outside of classyfieds:
http://wp1.smallworks.ca/rentals/test-page-for-formatting/

http://wordpress.org/extend/plugins/classyfrieds/