Index: wp-includes/shortcodes.php
===================================================================
--- wp-includes/shortcodes.php	(revision 7811)
+++ wp-includes/shortcodes.php	(working copy)
@@ -72,12 +72,16 @@
 	if (empty($shortcode_tags) || !is_array($shortcode_tags))
 		return $content;
 
+	$pattern = get_shortcode_regex();
+	return preg_replace_callback('/'.$pattern.'/s', 'do_shortcode_tag', $content);
+}
+
+function get_shortcode_regex() {
+	global $shortcode_tags;
 	$tagnames = array_keys($shortcode_tags);
 	$tagregexp = join( '|', array_map('preg_quote', $tagnames) );
 
-	$pattern = '/\[('.$tagregexp.')\b(.*?)(?:(\/))?\](?:(.+?)\[\/\1\])?/s';
-
-	return preg_replace_callback($pattern, 'do_shortcode_tag', $content);
+	return '\[('.$tagregexp.')\b(.*?)(?:(\/))?\](?:(.+?)\[\/\1\])?';
 }
 
 function do_shortcode_tag($m) {
Index: wp-includes/formatting.php
===================================================================
--- wp-includes/formatting.php	(revision 7811)
+++ wp-includes/formatting.php	(working copy)
@@ -74,6 +74,7 @@
 	$pee = preg_replace("/\n\n+/", "\n\n", $pee); // take care of duplicates
 	$pee = preg_replace('/\n?(.+?)(?:\n\s*\n|\z)/s', "<p>$1</p>\n", $pee); // make paragraphs, including one at the end
 	$pee = preg_replace('|<p>\s*?</p>|', '', $pee); // under certain strange conditions it could create a P of entirely whitespace
+	$pee = preg_replace('/<p>(\s*?' . get_shortcode_regex() . '\s*)<\/p>/s', '$1', $pee); // don't auto-p wrap post-formatting shortcodes	
 	$pee = preg_replace('!<p>([^<]+)\s*?(</(?:div|address|form)[^>]*>)!', "<p>$1</p>$2", $pee);
 	$pee = preg_replace( '|<p>|', "$1<p>", $pee );
 	$pee = preg_replace('!<p>\s*(</?' . $allblocks . '[^>]*>)\s*</p>!', "$1", $pee); // don't pee all over a tag
@@ -87,6 +88,7 @@
 		$pee = preg_replace('|(?<!<br />)\s*\n|', "<br />\n", $pee); // optionally make line breaks
 		$pee = str_replace('<WPPreserveNewline />', "\n", $pee);
 	}
+	$pee = preg_replace('/(' . get_shortcode_regex() . ')<br \/>/s', '$1', $pee); // don't br block shortcodes
 	$pee = preg_replace('!(</?' . $allblocks . '[^>]*>)\s*<br />!', "$1", $pee);
 	$pee = preg_replace('!<br />(\s*</?(?:p|li|div|dl|dd|dt|th|pre|td|ul|ol)[^>]*>)!', '$1', $pee);
 	if (strpos($pee, '<pre') !== false)