Can Multiple Paragraphs Be Included in a List Item? - XHTML 1.0 Tutorials - Understanding Lists and List Items

Yes. You can include multiple paragraphs in a single list item, because "li" is a flow type element, which can have block elements and inline elements. The tutorial example below shows you how a list item can have two paragraphs:

<?xml version="1.0" ?>
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
  "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">
<html>
 <head>
  <title>Lists with Block Items</title>
 </head>
 <body>
  <h3>Tutorial Tips by FYIcenter.com:</h3>
  <ol>
  <li><p><strong>XHTML Tutorials/FAQs</strong>
   - 116 Entries</p>
  <p>Topics includes: Introduction To XHTML 1.0, 
Introduction To Tag and Attribute Syntax,
Introduction To Element Content Syntax, 
Document Structure and Head Level Tags, 
Body Tag and Block Level Tags,
Understanding In-line Elements and Tags, etc.</p>
  </li>
  <li><p><strong>PHP Tutorials/FAQs</strong>
   - 204 Entries</p>
  <p>Downloading and Installing PHP,
Understanding and Managing Cookies,
Understanding and Using Sessions,
Processing Web Forms, 
Working with MySQL Database, 
Uploading Files to Web Servers, etc.</p>
  </li>
  </ol>
 </body>
</html>

If you save the above document as block_list_item.html, and view it with Internet Explorer, you will see a list of items with multiple paragraphs as shown below: