Me too. Fucking annoying… I was hoping this problem would go away with 2.8 but it’s still here.
I’ve heard something about TinyMCE not being compatible with Safari on Mac and thought it might be that. However, I’ve just tried Firefox (3.0.11, Mac) and, again, no <p> tags.
I can’t believe people aren’t making more of this – there is no way I can hand a WP installation over to a client when something so simple is broken.
This does seem to be a bug in 2.7.*
It only affects category_name in query_posts when the category name has spaces in it e.g.:
query_posts('category_name=Name of Category');
Filosofo‘s response (above) is correct – changing the spaces to dashes solves this problem.
If you don’t know how to do this:
$cat_name = 'Name of Category';
$cat_name = str_replace(' ','-',$cat_name);
query_posts('category_name='.$cat_name);
