TYPO3 Core

I have fresh dummy+src install of TYPO3 4.2.8, coming with htmlarea
1.7.11.
I have FCE with a field which is of type RTE. I've created the FCE.
Now, when I want to create a content element based on this FCE, I add the text which contains h1, h2, h3 tags and so on, then I save it, the text is saved without "<" and ">". I dont understand this why is it so? Can someone please assist? I've posted this to the rte mailing list as well.
Is this a bug introduced with 4.2.8 or am I something missing because the
installation I have is pretty much standard. I am trying to recall all the
setting that we have in place that eventually may cause this behavior.
Please hint?

Compared to the other normal content elements, everything is fine, and I can
apply and set h1, h2, h3 tags, and etc. The only problem I have is with RTE
within flexible content element.

I get text like this:
h1GROTEK/h1 h2Lorem Ipsum is simply dummy text centuries, but also the leap into electronic typesetting/h2 Industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type containing Lorem Ipsum passages, and more recently Lorem Ips....

PHP 5, MySQL 5
(issue imported from #M11749)