Originally Posted by Hitch
I concur, but I was covering the bases; it's possible it's Topaz, although that dropcap is so crappy I think not.
For Tesseract: Dropcaps are easily done in K8 format now; most tweaking is done simply based on fonts, as each tends to be slightly different and requires some line-height adjustment; we use a media-call fallback for the K7 (or, as some call it, the K6) version for the e-ink devices, creating the same type of "Raised Initial" that Calibre creates. This is a pretty easy solution.
I forgot about the line-height adjustment. The Kindle firmware versions 4.1 and 5.1 don't respond to line-height. So Drop cap might not actually work properly on the two eink Kindles.