I am running DotNetNuke 3.1 and I have the latest version as of 7/11/05 for DNN 3.1.  It works well, but I am getting some horrible issues when trying to use bulleted lists.  I have traced it to the issue of the break element.  If you go into a current block of text, whether it is free or in a div, regardless of whether or not you have your BreakElement set to br or div, and you hit enter, you get br's for each new line inside the current div.  If you then try and create a bulletted list out of any line in there, it makes the entire div the first element of the list.  I have found that if you use P for your BreakElement, everytime you you hit enter, you always get a new paragraph, and creating a bulletted list works as you would suspect.