To reproduce problem on http://parsoid.wmflabs.org/_html/, input:
<p><i>Original </i><i>else</i><i> here.</i></p>
Results in:
''Original ''''else'''' here.''
Which MediaWiki PHP parser currently outputs back as[1]:
<p><i>Original '<b>else'</b> here.</i></p>
Version: unspecified
Severity: normal