# This doesn't work! It returns html in pure strings and not the html elements!
textilize @blog.content
# Need this extra step.
sanitize(textilize @blog.content)
**UPDATED**
The problem lies that Rails 3 ERB uses h() helper by default
<\%= xxx %>
<\%= h(xxx) %>
To get past this use context_tag() or raw()
xxx = content_tag(:p, "blah")
<\%= xxx %>
xxx = "<\p>blah<\/p>"
<\%= raw xxx %>