If your numbered list consists of numbers (not letters or Roman numerals), the SmartList styles automatically hard-code the value of the list item into the HTML output. For example, the output might look like this:
<OL> <LI value=1>Do this. <LI value=2>Do this. </OL> <P>Note: Don't forget this.</P> <OL> <LI value=3>Do some more stuff. </OL>
Notice that the value attribute in the third list item (3) overrides the calculated value of the list item (1), so that the correct number is displayed, even though the HTML isn't quite right. But because it's so easy to get the numbering right this way, you may decide that the HTML is acceptable.