Index: modules/field/modules/options/options.module
===================================================================
RCS file: /cvs/drupal/drupal/modules/field/modules/options/options.module,v
retrieving revision 1.5
diff -u -F^[fc] -r1.5 options.module
--- modules/field/modules/options/options.module	12 Apr 2009 02:18:51 -0000	1.5
+++ modules/field/modules/options/options.module	29 Apr 2009 17:27:46 -0000
@@ -194,6 +194,13 @@ function options_select_process($element
   }
 
   $options = options_options($field, $instance);
+  // For this specific widget, HTML should be filtered out and entities left
+  // unencoded.  theme('select') will call check_plain() on
+  // both the key and value, so if we do not decode entities in the
+  // values here, they will end up double-encoded and the user will
+  // see the encoded form.
+  $options = array_map(create_function('$opt', 'return html_entity_decode(strip_tags($opt), ENT_QUOTES);'), $options);
+
   $element[$field_key] = array(
     '#type' => 'select',
     '#title' => $element['#title'],