Hi Adam,
I'm confused.
When I tried your demo on the first day I reported this bug, the demo code was able to do a replace all of '<li>' with '<li><h4>' without a problem. However, when I tried it yesterday, the demo gave me the "Please use replace function" pop-up. And today when I try the same replace all sequence, it works like it did several days ago, i.e. without error (no pop-up).
Did you update the code yet again yesterday or today?
As an aside, I would strongly encourage you to update the date on the download page any time you change any part of the code. It's very confusing and misleading to those of us trying to figure out when/if to update. There for a while, you were publishing a change list with each code update, and that would be tremendously helpful as well.
Regards,
Bill