I just tried it with the latest svn. HTML is still possible within the album/image descriptions and the custom fields. It is not within any other field (and never was..:-)).
Looks like an over zelous HTML validation issue purge assuming it is the Effervescence+ theme. That will be fixed. If it is a different theme, please let us know which.
I'm using the Default theme. Had the problem once before and something was fixed to make it all better (nightly build). Not sure if current problem is related.
It's working for me, too. `` is also correct html, but it's recommend to use `` indeed (the first is only visual, the other considered to be sematic...:-))
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default theme, index.php where it does a printImageDesc() below the image.
But I did use `` which is the correct html.