I have the exact same issue with the Atlantic recipe. I'm using a Sony PRS 505, latest firmware I could find and calibre 0.6.16.
The epub looks fine and dandy on my calibre viewer, but whenever I turn to page 9ish or so on my reader (the first big image), my reader goes into reboot mode.
I can also confirmed it happened for 2 different issues (sept and oct). Freaked me out the first time I saw it. I've been making do with a custom recipe for now (no images and not so pretty formatting)
Was this ever solved?