Er, just the opposite? TeX output does indent here.
Sigh, guess I misparsed your message with all that ASCII art :).
Since the paragraph is still inside the @itemize environment, it is
reasonable to indent them as far as the @item line.
Please send me the actual Texinfo document (or preferably a reduced
version). When I try it on a test (see below), I get the output that I
think you are asking for. I just ran makeinfo -o item2par.out item2par.texi.
karl
----------------------------------------------------------------------
\input texinfo
@setfilename item2par.info
@settitle item2par
@node Top
@top Top
@itemize @bullet
@item first item.
second paragraph. text more text text sakdj ksdj ksdjsadjsak djksdj
ksdjk sdjks dafkdsaj fksadjf.
third paragraph. sdkfj sdkfjkds fkdf kafjkasdfjksdjfkadjfkadfjkadfjakfj
ak kadjfkj.
@item second item.
@end itemize
@bye
----------------------------------------------------------------------
File: item2par.out, Node: Top, Up: (dir)
Top
***
* first item.
second paragraph. text more text text sakdj ksdj ksdjsadjsak
djksdj ksdjk sdjks dafkdsaj fksadjf.
third paragraph. sdkfj sdkfjkds fkdf
kafjkasdfjksdjfkadjfkadfjkadfjakfj ak kadjfkj.
* second item.