[shadow] conversion problem with this embedded raw HTML

_This is a _shadow issue* for Issue 41 on Google Code (from which this project was moved).
Added 2010-06-09T17:06:09.000Z by tre...@gmail.com.
Labels: Type-Defect, Priority-High.
Please make updates to the bug there.*

Original description

markdown2.py doesn't get all the "# ..." h1's in the following. Markdown.pl doesn't either. The version (old) of markdown.py that I have does get this right:

{{{
<style>
h1 {
    border-top: 3px solid #ccc;
    padding: 10px 0;
    margin: 40px 0 10px 0; 
}
</style>

# `.as_font_swiss921` (Swiss 921 BT Regular A)

<div class=&quot;as_font_swiss921&quot; style=&quot;font-size: 36px;&quot;>Active<span class=&quot;as_brand_red&quot;>State</span></div>

<div class=&quot;as_font_swiss921&quot;>Active<span class=&quot;as_brand_red&quot;>State</span> Code</div>

<div class=&quot;as_font_swiss921&quot;>trent<span class=&quot;as_brand_red&quot;>m</span>@active<span class=&quot;as_brand_red&quot;>state</span>.com</div>
<div class=&quot;as_font_swiss921&quot;>Trent<span class=&quot;as_brand_red&quot;>M</span>@Active<span class=&quot;as_brand_red&quot;>State</span>.com</div>



# `.as_font_swiss721cnbold` (Swiss 721 BT Condensed Bold)

<div class=&quot;as_font_swiss721cnbold&quot; style=&quot;font-size: 36px;&quot;>Active<span class=&quot;as_brand_red&quot;>State</span></div>

<div class=&quot;as_font_swiss721cnbold&quot;>Active<span class=&quot;as_brand_red&quot;>State</span> Code</div>

<div class=&quot;as_font_swiss721cnbold&quot;>trent<span class=&quot;as_brand_red&quot;>m</span>@active<span class=&quot;as_brand_red&quot;>state</span>.com</div>
<div class=&quot;as_font_swiss721cnbold&quot;>Trent<span class=&quot;as_brand_red&quot;>M</span>@Active<span class=&quot;as_brand_red&quot;>State</span>.com</div>



# ActiveState dev'y site banner comparisons

<div style=&quot;padding: 50px; background-color: #056c84&quot;>
  <div><img src=&quot;img/as_code.png&quot;> # image</div>
  <div><span class=&quot;as_font_swiss721cnbold as_banner_text&quot;>ActiveState Code</span> # web font</div>
</div>
}}}

Start with markdown2.py and reproduce the embedded-HTML example from the issue, focusing on the headings containing inline code and raw HTML. Compare the conversion with the behavior described for the old markdown.py and Markdown.pl; done means the affected h1 headings are recognized correctly without breaking the embedded HTML.