That file converted successfully on my machine
Here's the output:
https://dl.dropbox.com/u/16806101/03.mobi
I fixed a couple of issues with filenames today, can you checkout the latest version and tell me if it works for you?
OS X:
https://dl.dropbox.com/u/16806101/Ki...er_osx_2.3.zip
Win64:
https://dl.dropbox.com/u/16806101/Ki...-amd64_2.3.zip
Many thanks!