Jon,
I get the p tag by default with the settings in my first post. 

The contents of the Paragraph Style (FormatBlock) menu can be changed with the format:

<paragraphs>
<paragraph name="Heading 1" value="&lt;H1&gt;" />
...
</paragraphs>

as per the documentation

But I have had limited success with my test.

Forgive me for being such a grouch, but I'm having a hard time understanding why this new editor, which actually seems to have less functionality implemented in a default configuration, is such a good thing.  Yes, the interface is slicker looking than FCK, but no emoticons?  REALLY?  I really have to dig in to code to turn that back on?  And no way to hot-link to an image URL for embedding images in a post?  Am I missing something here?  I had to go back to FCK on my "upgraded" sites because my forum users no longer have any emoticons and they can't post images by just posting the URL.

Do I really need to edit a bunch of code to turn this stuff back on ?

REALLY??

I'd post an angry face emoticon, but you don't have any now, and I can't even hot link to my own ^-^ 

Pretty GUI is important yes, but, in my view - and in the view of many of my colleagues who use DotNetNuke, this implementation was very poorly handled.  Since when to you get LESS features in an "upgrade"  I've got to be honest, Drupal is looking better and better lately.  And I HATE saying that because I've been a HUGE fan of DotNetNuke since version 3, but lately the upgrades have reminded me of the Keystone cops.  And that's bad for business.  I've got about 4,000 end users who are really, really angry right now.