empty lines in code-block not displayed properly

[oshh]

<?
/**
* Example:
* <code>
* $val = "foo";
*
* $val2 = "bar";
</code>
*/

Will produce:

<p>
<code>
$val = "foo";
</code>
</p>

<p>
<code>
$val2 = "bar";
</code>
</p>

I did not check other templates on this bug