If you have added <li> elements to a named flow without adding their <ol> or <ul> wrapper to the named flow, the counters or bullets for the list items is displayed outside the bounds of the region.
Created attachment 174240 [details]
Created attachment 177425 [details]
similar behavior, but with background-color styled via bare li selector
I'm not really sure this is a bug - see the description of list-style-position over at http://www.w3.org/TR/CSS21/generate.html#propdef-list-style-position and the behavior of background-color with a similar selector (bare li).
Created attachment 177426 [details]
test file showing behavior for background-color and flow-into
Created attachment 177540 [details]
Test file showing difference in three bare list item cases
I still think there's something wrong. Take a look at this file. Why is the middle box different?
My guess is that the bare list items in the first and third boxes get an anonymous unordered list box created inside the content area of their yellow boxes, then the bullets are composed inside that box.
In the middle case, there's an empty list in the normal flow somewhere, so the list items in the named flow do not get an anonymous unordered list box created inside the region. I think they should.
As per additional off-line discussions, this is not a bug, thus closing it as RESOLVED/INVALID.
(The gist of it is this: when "simulating" lists using CSS only e.g. with display: list-item and list-style-type: decimal, the marker boxes are drawn outside of the container box. This behavior is consistent with Firefox & Opera, too)