diff --git a/NEWS b/NEWS
index 87ea7dfe..855325a3 100644
--- a/NEWS
+++ b/NEWS
@@ -17,6 +17,7 @@ NEWS ( CHANGELOG and HISTORY )                                     HTMLPurifier
 - AutoFormatters emit friendly error messages if tags or attributes they
   need are not allowed
 - ConfigForm's compactification of directive names is now configurable
+- AutoParagraph autoformatter algorithm refined after field-testing
 . HTMLPurifier_Config->getSerial() implemented, this is extremely useful
   for output cache invalidation
 . ConfigForm printer now can retrieve CSS and JS files as strings, in
diff --git a/library/HTMLPurifier/Injector/AutoParagraph.php b/library/HTMLPurifier/Injector/AutoParagraph.php
index a932ece9..24ca9d5e 100644
--- a/library/HTMLPurifier/Injector/AutoParagraph.php
+++ b/library/HTMLPurifier/Injector/AutoParagraph.php
@@ -96,11 +96,19 @@ class HTMLPurifier_Injector_AutoParagraph extends HTMLPurifier_Injector
                 // this token is already paragraph, abort
                 if ($token->name == 'p') return;
                 
-                // check if this token is adjacent to the parent
-                if ($this->inputTokens[$this->inputIndex - 1]->type != 'start') {
+                // this token is a block level, abort
+                if (!$this->_isInline($token)) return;
+                
+                // check if this token is adjacent to the parent token
+                $prev = $this->inputTokens[$this->inputIndex - 1];
+                if ($prev->type != 'start') {
                     // not adjacent, we can abort early
                     // add lead paragraph tag if our token is inline
-                    if ($this->_isInline($token)) {
+                    // and the previous tag was an end paragraph
+                    if (
+                        $prev->name == 'p' && $prev->type == 'end' &&
+                        $this->_isInline($token)
+                    ) {
                         $token = array($this->_pStart(), $token);
                     }
                     return;
diff --git a/tests/HTMLPurifier/Injector/AutoParagraphTest.php b/tests/HTMLPurifier/Injector/AutoParagraphTest.php
index 07252794..441be0de 100644
--- a/tests/HTMLPurifier/Injector/AutoParagraphTest.php
+++ b/tests/HTMLPurifier/Injector/AutoParagraphTest.php
@@ -242,6 +242,25 @@ Par1
 '<p><img /> Foo</p>'
         );
         
+        $this->assertResult(
+'<li>Foo <a>bar</a></li>'
+        );
+        
+        $this->assertResult(
+'<li><b>baz</b><a>bar</a></li>'
+        );
+        
+        $this->assertResult(
+'<div><div>asdf</div><b>asdf</b></div>'
+        );
+        
+        $this->assertResult(
+'<div><div>asdf</div>
+
+<b>asdf</b></div>',
+'<div><div>asdf</div><p><b>asdf</b></p></div>'
+        );
+        
     }
     
     function testInlineRootNode() {