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You can fix most Stanza rendering problems on the iPhone by turning of the "Display Styles" option in the Layout section of the settings. But that can cause problems if italics and other features are encoded in styles, which are then ignored.
There is a txtr app that displays ePub, but that (I think) streams the files from their server, so you have to upload to them first - I could be wrong.
eReader from Fictionwise was supposed to be gaining ePub support but that appears to have stalled. They all seem to use the ADE Mobile libraries to display them so until someone writes their own ePub engine (iBooks?), they are all going to be a bit flaky.
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