That's one bad thing about Wordpress - It automatically edits your HTML code, and you can't disable this function (as far as I know). It's caused me lots of grief with HTML examples...
Look what it does to your javascript! ::
Code:
<p><script type="text/javascript"></p>
<p>stepcarousel.setup({
galleryid: 'mygallery', //id of carousel DIV
beltclass: 'belt', //class of inner "belt" DIV containing all the panel DIVs
panelclass: 'panel', //class of panel DIVs each holding content
autostep: {enable:true, moveby:1, pause:3000},
panelbehavior: {speed:500, wraparound:false, persist:true},
defaultbuttons: {enable: true, moveby: 1, leftnav: ['Untitled-2.gif', 10, 80], rightnav: ['Untitled-2_right.gif', -30, 80]},
statusvars: ['statusA', 'statusB', 'statusC'], //register 3 variables that contain current panel (start), current panel (last), and total panels
contenttype: ['inline'] //content setting ['inline'] or ['external', 'path_to_external_file']
})</p>
<p></script></p>
Every line break it determines as a <P>... There have been many angry bug reports in the Wordpress Codex, and they plan to fix it in a future release...
Not much you can do, file another report into Wordpress and maybe they'll be fed up with all the reports and fix the issue... 
// X96 \\
Bookmarks