Variablelist nested inside itemizedlist renders poorly in pdf

All,

When I have a variable list nested inside an itemizedlist and use the fo
stylesheets, fop renders it as the dingbat with the <term> text on the
next line.

Example:

*
  Term
    Listitem1

If it is agreed that this is not correct, I will submit as an error to
SF.

Thanks.

John