Disabling the option “WordPress should correct invalidly nested XHTML automatically,” fixing the HTML, then re-enabling “WordPress should correct invalidly nested XHTML automatically” worked.
I know that the last item is not enclosed in the <ul> set. That is part of the problem. WP Editor reformats the HTML when I correct the code to place the </ul> tag in the correct location.
I will turn off the option to have WP correct invalidly nested XHTML, fix the post, and thurn the option back on. I do not want it turned off because I don’t know who might screw around and put bad HTML in their post.
Thanks all for the suggestions.