Repost: Nested lists not working

Hi

Sorry if this is a repost: I am not sure if my first message went through.

I am not able to get nested lists to work, using the April 15 2006 build of muse 
(3.02, patch 61, i think). Muse just ignores the nesting.. I have tried several 
combinations, nothing works, I just get all the 0 level items listed, and the 1 
level items appended to the preceding 0 level item. Is there something I am 
missing ?

For example 

 - Level 0 item 1
     - Level 1 item 1
 - Level 0 item 2

gives

*Level 0 item 1 - Level 1 item 1
*Level 0 item 2

in the output (bullet instead of asterisk).

Thanks, Suresh