Hi Haris,
When I highlight and ctrl-shif-L to "Itemize Lines in Selection", it hoses the second line. I guess it's finding the ":" in my \ref {fig:1b} and thinking that I'm trying to make some kind of definition list?
This is exactly what it was doing. I changed it so that this only happens if previously in the line there is no backslash. So it should work for you now.
Thanks for the (as usual) quick fix!
-steve