My Cybook also has 538 preinstalled. Maybe it is just because its new, it seems a bit odd if this is the case because the LED indicates a button press.
Justification doesn't seem to make any difference to the variable speed of page changes.
As for the line spacing, thats just a personal preference, it would benefit me to be able to reduce this slightly, but even without this option I still feel the whole screen could be utilised when headers are disabled for example.
If replacing the SD card fixes the bookmark issue then I can live with everything else.
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