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Have you checked it in Calibre reader? My suspicion would be that the pdf's you are using have the characters/fonts embedded. Calibre is probably creating the correct output, but without an embedded font. Stanza probably doesn't have access to those characters, so you don't see anything. You would need to use Sigil to embed a font, and even then I'm not certain Stanza is compliant enough to use it.
Then again you could be having encoding problems. All depends on what you really mean by 'gibberish'
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