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Here is a screen shot from one of my recent posts. You can see inside the edit box after the or I've entered a "2." but in the preview display, and in the actual display on the page it turnend my 2 into a "1." Whats up with that? Is it thinking that I am starting two separate numbered lists or something since I put an or in the middle to break them up?

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1  
It's not really a bug, but status-bydesign. That's just the way two separate ordered lists work. You might be interested in seeing this question. – Jeff Mercado Dec 9 '11 at 16:16
up vote 12 down vote accepted

The others answers have explained what's happening -- but to get what you want, do this:

1. some stuff

  **or** (indented)

2. some other stuff

That gives:

  1. some stuff

    or (indented)

  2. some other stuff

The bolding should hopefully serve the same purpose as outdenting.

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Yes, that's what happened. It seems that numbered lists are detected with a regular expression that takes any number as valid in that context, but then the numbers are replaced automatically. Observe that the reverse will also happen: when I write

// Put this inside a code block so that auto-formatting does not kick in
1. Item 1
1. Item 2

It comes out as:

  1. Item 1
  2. Item 2
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This is a Markdown feature ("feature" -- personally I find it annoying). It's explained on the editing help page:

A numbered <ol> list:

1. Numbered lists are easy
2. Markdown keeps track of the numbers for you
7. So this will be item 3.

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