[jackie_w]

Hi Simon,

It works OK for me - attached a screencap of the zip-to-epub conversion. I copied the html directly from your post.

These are the conversion settings shown in the conversion job details. You could compare them against your own.

Spoiler:

Convert book 1 of 1 (Indent)
Processing archive...
Resolved conversion options
calibre version: 0.8.1
{'asciiize': False,
 'author_sort': None,
 'authors': None,
 'base_font_size': 12.0,
 'book_producer': None,
 'breadth_first': False,
 'change_justification': u'justify',
 'chapter': u"//*[name()='h2' or name()='h3']",
 'chapter_mark': u'pagebreak',
 'comments': None,
 'cover': None,
 'debug_pipeline': None,
 'dehyphenate': True,
 'delete_blank_paragraphs': True,
 'disable_font_rescaling': False,
 'dont_package': False,
 'dont_split_on_page_breaks': False,
 'enable_heuristics': False,
 'epub_flatten': False,
 'extra_css': None,
 'extract_to': None,
 'fix_indents': True,
 'flow_size': 260,
 'font_size_mapping': u'9, 10, 11, 12, 14, 16, 20, 33',
 'format_scene_breaks': True,
 'html_unwrap_factor': 0.4,
 'input_encoding': None,
 'input_profile': <calibre.customize.profiles.InputProfile object at 0x04619BF0>,
 'insert_blank_line': False,
 'insert_metadata': False,
 'isbn': None,
 'italicize_common_cases': True,
 'keep_ligatures': False,
 'language': None,
 'level1_toc': u'//h:h2',
 'level2_toc': u'//h:h3',
 'level3_toc': None,
 'line_height': 0.0,
 'linearize_tables': False,
 'margin_bottom': 5.0,
 'margin_left': 5.0,
 'margin_right': 5.0,
 'margin_top': 15.0,
 'markup_chapter_headings': True,
 'max_levels': 5,
 'max_toc_links': 0,
 'minimum_line_height': 0.0,
 'no_chapters_in_toc': False,
 'no_default_epub_cover': False,
 'no_inline_navbars': False,
 'no_svg_cover': False,
 'output_profile': <calibre.customize.profiles.SonyReaderOutput object at 0x04627050>,
 'page_breaks_before': u'/',
 'prefer_metadata_cover': False,
 'preserve_cover_aspect_ratio': False,
 'pretty_print': True,
 'pubdate': None,
 'publisher': None,
 'rating': None,
 'read_metadata_from_opf': u'c:\\docume~1\\jackies\\locals~1\\temp\\calibre_0.8.1_tmp_uqmxez\\calibre_0.8.1_mxv6oi.opf',
 'remove_fake_margins': False,
 'remove_first_image': False,
 'remove_paragraph_spacing': False,
 'remove_paragraph_spacing_indent_size': 1.5,
 'renumber_headings': True,
 'replace_scene_breaks': u'',
 'series': None,
 'series_index': None,
 'smarten_punctuation': True,
 'sr1_replace': None,
 'sr1_search': None,
 'sr2_replace': None,
 'sr2_search': None,
 'sr3_replace': None,
 'sr3_search': None,
 'tags': None,
 'timestamp': None,
 'title': None,
 'title_sort': None,
 'toc_filter': None,
 'toc_threshold': 6,
 'unwrap_lines': True,
 'use_auto_toc': False,
 'verbose': 2}
InputFormatPlugin: HTML Input running
on c:\docume~1\jackies\locals~1\temp\calibre_0.8.1_tmp_uqmxez\calibre_0.8.1_dauecr_plumber_archive\content.opf
Parsing all content...
Manifest item 'toc.ncx' not found
Parsing Indent.html ...
Generating default TOC from spine...
Merging user specified metadata...
Detecting structure...
Auto generated TOC with 0 entries.
Flattening CSS and remapping font sizes...
Source base font size is 12.00000pt
Cleaning up manifest...
Trimming unused files from manifest...
Parsing stylesheet.css ...
Creating EPUB Output...
	Looking for large trees in Indent.html...
	No large trees found
Generating default cover
This EPUB file has no Table of Contents. Creating a default TOC
EPUB output written to c:\docume~1\jackies\locals~1\temp\calibre_0.8.1_tmp_uqmxez\calibre_0.8.1_f4viod.epub

Edit: If I had to guess I would start by looking at the 'remove_paragraph_spacing' option on the Look&Feel page