What you're seeing is caused by two separate bugs in Adobe Digital Editions:
1. It incorrectly treats the contents of name anchors (without an href) as links, and underlines them. (This one is already listed in the EPUB tips section on the Wiki in the "general" section, though now that there's a separate ADE area, it should probably be mentioned there as well.)
2. Apparently, ADE also doesn't properly support the self-closing tag syntax, which is also clearly a bug, because EPUB books are XHTML (XML), not HTML. I've added a note about that to the EPUB tips section.
I'm assuming the MIME type in your metadata.opf file is "application/xhtml+xml" rather than "text/html", correct? Because if you mis-specify that, ADE's behavior is technically legal, though archaic. Then again, I'd be surprised it worked at all if you did that, so....
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