in 0.4.2. you also have to tick th box that says regular expression in the find /replace options
as to what it means - find is looking for </p> followed by any amount of whitespace ( which includes new lines) , followed by the new style, followed by a lower case letter.
the replace \1 says "remember" that lower case letter you found earlier in the 1st set of ( ) - now reuse it after a space.
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