I have found this really cool module (http://www.magentocommerce.com/magento-connect/markdown.html), which works like a charm..for the most part.
There is a slight issue with Categories/Product description text areas. Markdown is rendered correctly. However, magento variables like store_url, are not resolved.
I tested this on static blocks and CMS pages and it works fine i.e. Magento variables are rendered correctly with the markdown.
Could someone assist on this?
First you should check with the module developer on support issues.
Second: Are you using Magneto 220.127.116.11?
I have already mailed the module dev separately.
Unfortunately, I have not received a response yet.
Apologies for not providing the magento version earlier.
Its 18.104.22.168 .