Rails 3 assumes that everything is NOT html safe (a change of opinion from Rails 2). Now, all strings are html escaped by default:
<%= h some_string %>
is now the same as
<%= some_string %>
To unescape the HTML (i.e you already know that the string is OK to render out), you need to mark it as html_safe or use keyword raw :
<%= some_string.html_safe %>
or
<%=raw some_string %>