i think the issue is similar to the margins not working when in the body. I think that it is the way the Kobo Touch is making changes like fonts and margins by overriding the body style (the have stated that they have a lot of issue with the adobe SDK and this might be a workaround).
If they are overriding the font-family in the css, maybe that is why they can't use the font embedded there. I would really like with issue like this to have them acknowledge that there is a problem of if they simply can't do anything because of the way they have programmed it and don't want to redo everything.
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