Thank you for explaining how to split the .mobi - I now remember seeing that option...
Interesting that it is still unclear if the bug is in Kindlegen or in the firmware.
If the bug is in Kindlegen but the Touch and Fire know about it and fix it, like the Previewer does, but Kindle 3.4 doesn't, then if they fixed the bug all the devices that don't work would start working and the ones that work would stop working?
I can't agree that this error is insignificant. I expect perfection, even if it takes several software releases to get there.