Thanks hdb for trying to help, however, I can't see how to add your solves to the following.

sub story {
  my ($source, $doc_magic, $line_magic) = @_;
  
  my $inc = 0;
  my @sections;
  my @toc;
  while (my $line = <$source>) {
    chomp($line);
    next if !$line;
    
    if ($line =~ /^2/) {
      my ($number,$text) = split(/ /,$line,2);
      push @toc, anchor(textify($text), { href => '#'.idify($text) });
      $inc++;
    }
    
    push @{$sections[$inc]}, $line;
  }

  my $tab = 3;
  $inc = 0;
  for my $section (@sections) {
    if ($section) {
      section($tab, sub {
        $tab++;
        for my $line (@{$section}) {
          my $line = convert_string($line, $line_magic);
          
          line($tab, $line),     next if $line =~ /^</;
          line($tab, "<$line>"), next if $line =~ /^[bh]r$/;
          $doc_magic->{$1}->(),      next if $line =~ /^&\s+(.*)/;
          blockquote($tab, $1),  next if $line =~ /^bq\s(.*)/;
          item($tab + 1, $1),    next if $line =~ /^\*\s(.*)/;
          item($tab + 1, $2, { value => $1 }), next if $line =~ /^\*(\
+d+)\s(.*)/;
          item($tab + 1, "<strong>$1</strong> $2"), next if $line =~ /
+^\*s\s(.+\:)\s(.*)$/;
          row($tab + 1, $1, row_line($2)), next if $line =~ /^\|\s(.+)
+\s\|\|(.+)$/;
          heading($tab, $1, $2, { id => idify($2) }),    next if $line
+ =~ /^([1-6])\s+(.*)/;
          paragraph($tab, $line, { class => 'author' }), next if $line
+ =~ /^by /;
          paragraph($tab, $line);
        }
        $tab--;
      });
    }
    if ($inc == 0 && @toc > 3) {
      section($tab, sub {
        my $class = @toc > 25 ? @toc > 50 ? 'four' : 'three' : 'two';
        my $style = @toc > 50 ? 'font-size:smaller' : undef;
        list($tab + 1, 'u', \@toc, { class => $class, style => $style 
+});
      }, { class => 'contents'} );
    }
    $inc++;
  }
  
#  paragraph($tab,"written by $root_user", { class => 'author' });
}
[download]

The lists will more than likely always be mixed in with other things like:

__DATA__
2 This is a heading.
by An Author
This is just an opening paragraph, probably about the list.
* list 1 unordered item 1
* list 1 unordered item 2
*# list 1 unordered item 2 ordered item 1
*# list 1 unordered item 2 ordered item 2
*# list 1 unordered item 2 ordered item 3
* list 1 unordered item 3
** list 1 unordered item unordered item 1
** list 1 unordered item unordered item 2
** list 1 unordered item unordered item 3
**# list 1 unordered item unordered item 3 ordered item 1
**# list 1 unordered item unordered item 3 ordered item 2
**# list 1 unordered item unordered item 3 ordered item 3
* list 1 unordered item 4
hr
This is another paragraph about the list below it.
# list 2 ordered item 1
#3 list 2 ordered item 2
# list 2 ordered item 3
#* list 2 ordered item 3 unordered item 1
#* list 2 ordered item 3 unordered item 2
#* list 2 ordered item 3 unordered item 3
# list 2 ordered item 4
bq This is a quote
by Quote Author
Any maybe some final remarks.
& a little magic
[download]

(I'm having a bad weekend all around, nothing is sinking in.)

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