As default it should use the book style as it can. (It can't interpret some of the styles Nickel can). So it may simply be not understanded formatting.
Margins can be changed quite easily, easiest by text editing. Copy defaults.lua to defaults.persistent.lua (this way updates will not overwrite it)i in the koreader folder, then you can change the below values:
-- crereader margin sizes
-- margin {left, top, right, bottom} in pixels
DCREREADER_CONFIG_MARGIN_SIZES_SMALL = {5, 10, 5, 10}
DCREREADER_CONFIG_MARGIN_SIZES_MEDIUM = {10, 15, 10, 15}
DCREREADER_CONFIG_MARGIN_SIZES_LARGE = {20, 20, 20, 20}
I think with your preferences you can even double or triple the above pixels.
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