I just ran a test and found:
- My Kindle 3 (v3.1 firmware) displays the sample correctly.
- My Kindle for PC v1.4.? failed like your problem customer's.
- After upgrading to Kindle for PC v1.6.1 (I was getting ready to do so anyway) the book displays properly
BTW, both versions of Kindle for PC display the annoying gray background seen on some text in your screen shots. This was not the case on my Kindle device, where the background gray didn't display.
I suspect the problem is a Kindle for PC bug, perhaps fixed in the newest version.