Just in case anybody finds this, there's a nicer alternative that's not documented (I tripped over it after searching for hours, and finally found it in the bug list for the Android SDK itself). You CAN include raw HTML in strings.xml, as long as you wrap it in
<![CDATA[ ...raw html... ]]>
Example:
<string name="nice_html">
<![CDATA[
<p>This is a html-formatted string with <b>bold</b> and <i>italic</i> text</p>
<p>This is another paragraph of the same string.</p>
]]>
</string>
Then, in your code:
TextView foo = (TextView)findViewById(R.id.foo);
foo.setText(Html.fromHtml(getString(R.string.nice_html)));
IMHO, this is several orders of magnitude nicer to work with :-)