Inline [img] images get text wrapped

I am wanting to add some images into an ordered list of instructions. Like...

1. Do this step 1
2. Do this step 2
+---------+
| IMAGE +
+---------+
3. Do this step 3

But when I use the [img] BBCode tags, I get very poor results. Like...

1. Do this step 1
2. Do this step 2 +---------+
| IMAGE +
+---------+3. Do this step 3

How can I fix this?

My code looks like...

[list=1][*]Dowload the file below.  Usually you can just click on the link and the browser will prompt you where to save it.
[*]Run the file, usually by double-clicking on it from the location you saved it to.  Some browsers give you the option to run the file after downloading.
[*]Leave this running, and set it aside.
[*]Open Windows Explorer (as in My Computer, not Internet Explorer).
[img]/sites/default/files/WindowsExplorer.png[/img]
[*]Navigate to your directory.  By default, on a computer with Windows XP, this folder is [b]C:\Program Files\[/b]
[img align=left]/sites/default/files/FolderInExplorer.png[/img]
[*][b][color=#800000]IMPORTANT: If you have installed this before, you must remove old versions.[/color]

I have tried many things, like adding a "BR" after and before the image, changing themes, putting it in "P" tags, and everything else I can think of.

The outputted HTML for the list item with the image looks like...

<li>Open Windows Explorer (as in My Computer, not Internet Explorer).
  <img src="/sites/default/files/WindowsExplorer.png" alt="" class="bb-image" /><br />
</li>

This seems ok to me.

For reference, phpBB with a similar inline image from BBCode looks like...

<li>Open Windows Explorer (as in My Computer, not Internet Explorer).<br />
  <div class="inline-attachment">
    <dl class="file">
      <dt class="attach-image">
        <img src="./download/file.php?id=60" alt="WindowsExplorer.png" onclick="viewableArea(this);" />
      </dt>
      <dd>WindowsExplorer.png (4.48 KiB) Viewed 2908 times</dd>
    </dl>
  </div>
</li>

Most notable differences are CSS tags.

I notice BBCode includes a bbcode-test.css, but doesn't have any instructions on how / where to create your own, or if it's even using that one. I can't find any calls to bbcode-test.css in the code either.

Please help.