Paragraphs break <code> blocks

In a very simple post I just wanted to recite a part of an email I received. Now for this I just used the <code&gt: tags to indicate this part should be used verbatim.

However the result of something like this:
----
<code>
From: someone
To: someone else
Subject: something

Hi there,

This is my mail body.
In two lines...
</code>
----

Results in:
----
<p><code><br />
From someone<br />
To: someone else<br />
Subject: someone</code></p>
<p>Hi there,</p>
<p>This is my mail body.<br />
In two lines...</p>
----

resulting in only the first paragraph to be considered code. It does not matter where I put the . The only thing I can do is to put a before eveything that is considered a paragraph. Which seems silly at best.

If have Line break converter enabled.

You can see this at work at:

http://dag.wieers.com/blog/another-nice-debian-innovation

Very annoying since only the first paragraph is put in between statements.