Wow, talk about weird. Basically in Google Chrome (version 2.0.160.0) if you open up a previous post within Blogger in Draft (to edit), it "reinterprets" all of your previous text.
Example: Here is a post from one of my demo blogs of what your article should look like when logging into Blogger.com (in gChrome) when trying to edit a post.
And here is what it looks like in gChrome through draft.blogger.com:
I've tested other browsers (Firefox and Opera) and none of them are showing the same error.
Hopefully Google can take a look at this and fix it before they release 2.0 to the masses.
