unable to get clean br and lists

[P Kishor]

I am experiencing a strange problem with Markdown. Simple lists such as

* one
* two

are being rendered as

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

instead of

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

and, consecutive lines that end with two spaces (ending this line with
periods to denote spaces)..
and continue on should be rendered with <br>, but are getting wrapped in p as

<p>and, consecutive lines that end with two spaces (ending this line
with periods to denote spaces)  </p>
<p>and continue on should be rendered with <br>, but are getting
wrapped in p as</p>

Am I missing something very obvious?


-- 
Puneet Kishor