David,
I can't reproduce this problem.
Please try the following code:
<FormatBlock>
<item text="[[Normal]]" value="<P>">
<html><![CDATA[[[Normal]]]]></html>
</item>
<item text="[[Heading 1]]" value="<H1>">
<html><![CDATA[<b style='font-size:24pt'>[[Heading 1]]</b>]]></html>
</item>
<item text="[[Heading 2]]" value="<H2>">
<html><![CDATA[<b style='font-size:18pt'>[[Heading 2]]</b>]]></html>
</item>
</FormatBlock>
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