I have created a list so each line has a return at its end.
On the last line, the leading is too high, yet in my palette, it shows it's correct.
The next paragraph starts with a title that seems to be the issue. When I remove it, the leading on the line above adjusts and is right.
What is going on? (I use CS4)
Check in your type preferences. Apply leading to entire paragraphs will fix this. It's likely that the return at the end of your last line has a larger point size assigned to it, and it's throwing your leading off.
Turn on hidden characters and I suspect you’ll see a large return at the end.
Great, that fixed it, thanks!