Consider the following org file:

--8<---------------cut here---------------start------------->8---

* foo

Verbiage to begin the paragraph
#+begin_src shell
get-config.py var section [section ...]
#+end_src
and verbiage to end the same paragraph.

* bar

Verbiage to begin the paragraph
#+begin_example
get-config.py var section [section ...]
#+end_example
and verbiage to end the same paragraph.
--8<---------------cut here---------------end--------------->8---


When exported to latex with current git (Org-mode version 7.7 (release_7.7.120.g2edd.dirty)),
I get:

--8<---------------cut here---------------start------------->8---
Verbiage to begin the paragraph

\begin{verbatim}
get-config.py var section [section ...]
\end{verbatim}



and verbiage to end the same paragraph.
\section{bar}
\label{sec-2}


Verbiage to begin the paragraph

\begin{verbatim}
get-config.py var section [section ...]
\end{verbatim}


and verbiage to end the same paragraph.
--8<---------------cut here---------------end--------------->8---

so both instances of "verbiage to end the same paragraph" actually end
up being in a different paragraph, with three empty lines after a
source block and two empty lines after an example block, where none
existed before.  LaTeX indents the newly created paragraph and it
looks ugly. Of course, just a single empty line is enough to do
the damage, but the fact that there is more than one and that there
are different numbers, indicates multiple places where a gratuitous
newline is inserted.

I get sane behavior with the attached patch, but I'm wondering if it
breaks other backends, so if somebody is willing to test, I'd appreciate
it (and of course, I'll test as well). For the time being at least, this
is a trial balloon, not a real patch.

ISTR this issue coming up on the list recently: did I imagine it?  If
not, could somebody provide a reference? My feeble attempts at searching
gmane were unsuccessful. I did find an old thread between Nicolas Girard
and Carsten and apparently things were fine for a while. Or I may be
thinking about Tom Dye's problem with lists embedded in a paragraph.
about a month ago, but this is a different problem.

Thanks,
Nick