Checked your site and looks like things are normal. Yes, WP does strip out what it perceives as unwanted line breaks and rearranges the paragraphs, divs etc. That’s the job of parser which renders your posts/pages –
http://codex.wordpress.org/Function_Reference/wpautop
I created a draft post on your site (pls check the post Test LiveMesh – delete when done) and some of my sites too and saw the exact same behavior in your site as well as mine. So nothing to worry here. We just have to live around it since this is native WordPress behavior.