You've several post which go back quite a ways and in a couple there is conflicting information ... check your version of Moodle. Are you on 1.8 or 1.9.9?
The HTML is there because the TinyMCE HTML editor failed to load in the browser. What was entered before as HTML shows in the editor that's treating the item as text ... all text ... including the HTML. What causes that could be multiple reasons - from browser being used (as you've mentioned in a previous post about Chrome vs FireFox) as well as the version of browser and/or network issues and/or Moodle server issues (php settings, DB table corruptions in need of repair, etc.)
Will X get fixed if one upgrades? Well let's hope so, but this fact for sure ... all support for bug fixes as well as security fixes for version 1(.9) of Moodle ends this month. The 1.9.9 is now 10 subversions behind - highest is 1.9.19+
If you are on 1.9.9, as reported before, then the move to version 2 of Moodle is really a 'march'/migration ... 1.9.9 to 1.9.19+ first step and highly recommend that be done via GIT, then to 2.2.x, and from there I'd advise going through them all -> 2.3 -> 2.4 -> 2.5 and you might consider holding there. Now that assumes your server meets the requirements for PHP and for MySQL.
See the reqs listed for each version of the 'march' via the Moodle downloads page:
http://download.moodle.org/
You might also have to move the server OS from a 32 bit operating system to a 64 bit operating system ... Moodle 2 and the DB is pretty hefty ... even for sites of 250 users.
So you could be looking at a couple of days time ... if the person doing this migration is really familiar with the whole process - OS upgrades + Moodle March. Advised it's safest to do a step and then check functionality and be aware of any new utilities to move the site upwards ... like quizes and assignments. And, very important, do full site backups ... code directory, data directory, and an sql dump of the DB ... at every step.
From personal experience, can tell you that command line upgrades via git are more reliable - especially if the sever is of a Linux flavor. That's something else to consider if one is making a move upwards.
Or ... you could opt to install a fresh 2.5.x on a new server and try your luck at restoring 1.9.x backups to the fresh 2.5.x. Be forewarned, however, restoring 1.9.x backups users won't come across in course restores, courses restored will have 'legacy' file systems, user accounts will have to be imported bulk again and users enrolled in courses, and if you had any add-ons (mods/blocks) those may/may not be restored correctly. Some mods/blocks from 1.9 have not made the trip to version 2.
Am sure others have other thoughts/opinions .... sooooooooo ;)
'spirit of sharing', Ken