List Item (li) without containing UL OL

In the old fckeditor I could enter the following (incorrect) HTML code in source mode:

<li>item one</li>
<li>item two</li>

When I toggled / switched back to wysiwyg mode fckeditor would realize I was trying to make a list and automatically append the proper UL tag around my list items like so:

<ul>
<li>item one</li>
<li>item two</li>
</ul>

I've noticed that ckeditor 3.3.2 does not automatically detect that I'm trying to create a list and not only does it not add in the ul tags but it creates new lines (more and more of them) every time I toggle from source to wysiwyg like so:
First toggle:

<p>&nbsp;</p>
<p>
<li>
   item one</li>
</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>
<li>
   item two</li>
</p>

Second toggle:

<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>
<li>
   item one</li>
</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>
<li>
   item two</li>
</p>
<p>&nbsp;</p>

Making the problem worse each time.

The problem is even worse if I forget to put in closing li tags. So for example if I put this into source:

<li>item one
<li> item two

When I toggle out and back into source I now lose my first item completely and see this in source:

<p>&nbsp;</p>
<p>
<li>
   two</li>
</p>

I realize users shouldn't be putting in bad list HTML code, but it seems unfortunate that the old version of the editor was able to handle this situation and the new editor makes a mess of it.

BTW, you can easily test my examples with the demo of ckeditor here:
http://ckeditor.com/demo

and you can see an old version of fckeditor (not my website) to try it out on here: http://psykoptic.com/demo/syntaxhighlig ... fault.aspx