So I think I found a work-around. Open the Advanced menu and change the font in there, at least it worked for my book last night. However, to get to that point I deleted the book from my Kobo and then had to perform a factory restore on the Kobo Touch and re-sync it on my computer. On the Kobo website I went in to my purchases and bookmarked the book at page 1 (that's the only page you can bookmark it at). Then I re-sync'd my KT and it worked.
I'm pretty sure this is a bug in the latest firmware version because I know I've changed the font size before without this issue.
Anyways, good luck with your problem.
Kelly
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