diff --git a/html2xdoc/.cvsignore b/html2xdoc/.cvsignore
index bca2cda9..7063fd20 100644
--- a/html2xdoc/.cvsignore
+++ b/html2xdoc/.cvsignore
@@ -1,3 +1,5 @@
 target
 maven.log
 velocity.log
+bin
+.classpath
diff --git a/html2xdoc/plugin.jelly b/html2xdoc/plugin.jelly
index da889372..7236cb36 100644
--- a/html2xdoc/plugin.jelly
+++ b/html2xdoc/plugin.jelly
@@ -24,9 +24,6 @@
     
     <j:set var="outputencoding" value="${maven.docs.outputencoding}"/>
 
-    <!-- tool for converting HTML into XDoc -->
-    <j:useBean class="org.apache.maven.html2xdoc.Html2XdocBean" var="htmlTool"/>
-
     <!-- mapper for determining output file name -->
     <j:new var="mapper" className="org.apache.maven.util.CaseInsensitiveGlobPatternMapper"/>
 
@@ -56,6 +53,9 @@
 
     <j:forEach var="file" items="${docFiles.iterator()}">
 
+      <!-- tool for converting HTML into XDoc -->
+      <j:useBean class="org.apache.maven.html2xdoc.Html2XdocBean" var="htmlTool"/>
+
       <util:replace var="inDirForward" oldChar="\" newChar="/" value="${file.parent}"/>
       <j:set var="outDir" value="${dirMapper.mapFileName(inDirForward).0}"/>
       <ant:mkdir dir="${outDir}"/>
diff --git a/html2xdoc/src/main/org/apache/maven/html2xdoc/Html2XdocBean.java b/html2xdoc/src/main/org/apache/maven/html2xdoc/Html2XdocBean.java
index fa1e92de..81a8afee 100644
--- a/html2xdoc/src/main/org/apache/maven/html2xdoc/Html2XdocBean.java
+++ b/html2xdoc/src/main/org/apache/maven/html2xdoc/Html2XdocBean.java
@@ -295,8 +295,22 @@ public class Html2XdocBean {
      * @param node the node to add
      */
     private void addNode(Node node) {
-        currentNode.add(cloneNode(node));
-        currentParaNode = null;
+        if (currentParaNode != null && ! shouldBreakPara(node)) {
+            currentParaNode.add(cloneNode(node));
+        }
+        else {
+            currentNode.add(cloneNode(node));
+            currentParaNode = null;
+        }
+    }
+
+    /**
+     * @return true if the paragraph should be split, such as for a br or p
+     * tag
+     */
+    protected boolean shouldBreakPara(Node node) {
+        String name = node.getName();
+        return name.equals("p") || name.equals("br");
     }
 
     /**
diff --git a/html2xdoc/src/test/org/apache/maven/html2xdoc/TestHtml2Xdoc.java b/html2xdoc/src/test/org/apache/maven/html2xdoc/TestHtml2Xdoc.java
index b516b484..ac7747d2 100644
--- a/html2xdoc/src/test/org/apache/maven/html2xdoc/TestHtml2Xdoc.java
+++ b/html2xdoc/src/test/org/apache/maven/html2xdoc/TestHtml2Xdoc.java
@@ -65,26 +65,18 @@ package org.apache.maven.html2xdoc;
 import java.io.IOException;
 import java.io.StringWriter;
 import java.net.URL;
-import java.util.Iterator;
-import java.util.LinkedList;
-import java.util.List;
-
-import org.dom4j.CharacterData;
-import org.dom4j.Document;
-import org.dom4j.DocumentFactory;
-import org.dom4j.Element;
-import org.dom4j.Node;
-import org.dom4j.io.OutputFormat;
-import org.dom4j.io.SAXReader;
-import org.dom4j.io.XMLWriter;
-
-import org.cyberneko.html.parsers.SAXParser;
 
 import junit.framework.Test;
 import junit.framework.TestCase;
 import junit.framework.TestSuite;
 import junit.textui.TestRunner;
 
+import org.cyberneko.html.parsers.SAXParser;
+import org.dom4j.Document;
+import org.dom4j.io.OutputFormat;
+import org.dom4j.io.SAXReader;
+import org.dom4j.io.XMLWriter;
+
 /**
  * A test harness for the HTML to XDOC converter 
  * 
@@ -92,6 +84,8 @@ import junit.textui.TestRunner;
  */
 public class TestHtml2Xdoc extends TestCase {
     
+    protected boolean verbose = false;
+    
     public static void main( String[] args ) {
         TestRunner.run( suite() );
     }
@@ -107,11 +101,14 @@ public class TestHtml2Xdoc extends TestCase {
     // Test cases
     //-------------------------------------------------------------------------
     public void testOne() throws Exception {
+        assertConversion("codeinpara.html", "codeinpara.xml");
 		assertConversion("input1.html", "output1.xml");
 		assertConversion("h1h2.html", "h1h2.xml");
-		assertConversion("h3h4.html", "h1h2.xml");
+        assertConversion("h2h3.html", "h1h2.xml");
+        assertConversion("h2h4.html", "h1h2.xml");
+        assertConversion("h3h4.html", "h1h2.xml");
 		assertConversion("link.html", "link.xml");
-		assertConversion("comment.html", "comment.xml");
+        assertConversion("comment.html", "comment.xml");
     }
     
     // Implementation methods
@@ -119,9 +116,19 @@ public class TestHtml2Xdoc extends TestCase {
     protected void assertConversion(String input, String output) throws Exception {
         Html2XdocBean converter = createConverter();
         Document inputDoc = parseHtml(input);
+        
+        
         Document expectedDoc = parse(output);
         
         Document actualDoc = converter.convert(inputDoc);
+
+        if (verbose) {        
+            System.out.println("Comparing: " + input + " to: " + output);
+            System.out.println("Parsed: " + inputDoc.asXML());
+            System.out.println("Generated: " + actualDoc.asXML());
+            System.out.println();
+            System.out.println();
+        }
         
         assertEqual("Output for: " + input + " does not match: " + output, expectedDoc, actualDoc);
     }
diff --git a/html2xdoc/src/test/org/apache/maven/html2xdoc/codeinpara.html b/html2xdoc/src/test/org/apache/maven/html2xdoc/codeinpara.html
new file mode 100644
index 00000000..58d1de33
--- /dev/null
+++ b/html2xdoc/src/test/org/apache/maven/html2xdoc/codeinpara.html
@@ -0,0 +1,12 @@
+<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
+<html>
+<head>
+  <meta http-equiv="content-type" content="text/html; charset=ISO-8859-1">
+  <title>A title</title>
+</head>
+<body>
+
+<h3>Title</h3>
+Some text <code>some code</code> more text
+</body>
+</html>
diff --git a/html2xdoc/src/test/org/apache/maven/html2xdoc/codeinpara.xml b/html2xdoc/src/test/org/apache/maven/html2xdoc/codeinpara.xml
new file mode 100644
index 00000000..ad45b68e
--- /dev/null
+++ b/html2xdoc/src/test/org/apache/maven/html2xdoc/codeinpara.xml
@@ -0,0 +1,11 @@
+<document>
+  <properties>
+    <title>A title</title>
+  </properties>
+  <body>
+    <section name="Title">
+      <p>Some text <code>some code</code> more text
+      </p>
+    </section>
+  </body>
+</document>
diff --git a/html2xdoc/src/test/org/apache/maven/html2xdoc/h2h3.html b/html2xdoc/src/test/org/apache/maven/html2xdoc/h2h3.html
new file mode 100644
index 00000000..0fc6fc41
--- /dev/null
+++ b/html2xdoc/src/test/org/apache/maven/html2xdoc/h2h3.html
@@ -0,0 +1,20 @@
+<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
+<html>
+<head>
+  <meta http-equiv="content-type" content="text/html; charset=ISO-8859-1">
+  <title>A title</title>
+</head>
+<body>
+	
+<h2>A section title</h2>
+
+Some text
+<br/>
+More text
+
+<h3>a subsection</h3>
+
+This is a subsection. It only has this.
+
+</body>
+</html>
diff --git a/html2xdoc/src/test/org/apache/maven/html2xdoc/h2h4.html b/html2xdoc/src/test/org/apache/maven/html2xdoc/h2h4.html
new file mode 100644
index 00000000..4ec93b6d
--- /dev/null
+++ b/html2xdoc/src/test/org/apache/maven/html2xdoc/h2h4.html
@@ -0,0 +1,20 @@
+<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
+<html>
+<head>
+  <meta http-equiv="content-type" content="text/html; charset=ISO-8859-1">
+  <title>A title</title>
+</head>
+<body>
+	
+<h2>A section title</h2>
+
+Some text
+<br/>
+More text
+
+<h4>a subsection</h4>
+
+This is a subsection. It only has this.
+
+</body>
+</html>