Moby Dick works fine, so it must be a problem with the specific book I downloaded. That book looks fine in the desktop program, though, so it can't be too bad.
I think there's going to be a lot of "working things out" now that all these apps are live. I have 3 different reader programs and all have their strengths and weaknesses. Right now, I think I like BookShelf.app the best, but it's the only one I paid for, so I would expect more from it.
As much as I love my iPhone, this really points out how happy I am with my Kindle. It will be nice to always have a book with me, I never go anywhere without my iPhone, but for actually "sitting down to read", I'll pull out the Kindle every time. These middle-aged eyes just can't take the backlit LCD for very long