OK, I found the extra in ubb_lib.cgi
It posts properly.
The second bug having to do with this is in the reverse_ubb_code script. When you go to edit a post that has bullits in it, it does not convert it back properly. It leaves all the HTML code in place.

This ONLY applies to bullits, the rest of the UBB code converts.
All of this is located in ubb_lib_posting.cgi
But it is writtin in code that is above my head. I'm playing with it, but am having no luck. Any ideas?
I zipped up the .cgi file here:
www.netbattletech.com/ubb_prob.zip Go ahead and post in that thread and edit your post.
http://www.netbattletech.com/forum/cgi-bin/ultimatebb.cgi?ubb=get_topic;f=2;t=00050 8#000002