Just to let anybody who is following this thread know we have found the AZARDI bug on this issue and are working on the bug for the next release (very soon). Thanks for the great feedback and assistance. Today the IDPF started a much needed ePub3 test book site as well.
http://idpf.org/news/idpf-announces-...amples-project to help development of ePub 3 readers. Having said that, I am quite aware that our pernicious CSS bug has little to do with ePub 3! Really big, special thanks to you DiapDealer for the samples.