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On books that have not been run through Calibre in the way I normally do that, I see bold and italics just fine. I have not transferred any of my Calibre enhanced books onto my Touch yet as I am one of those folks who like to make sure that the Kobo driver changes on Calibre are stable and I was not yet convinced. Of course the fact that all my calibre books were on a full sized SD card in the past and now I have to use a different card comes into play, as well.
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