Firstly, as I would expect this to have a lot of pictures in it, loading it as a kepub is probably a good idea. I think the zoom for pictures in it should help.
The working on the Glo and not the Glo HD is strange. The only thing I can think of is that I think the RMSDK has been updated between between firmware 3.12.1 and 3.16.0. But, when I have seen the error you saw, it was a processing problem. The last time was with a book I created with 4503 ToC entries. These were not added to the database properly and the book couldn't be opened.
The PNG bug only affects kepubs so that isn't it. And it shows a black rectange where the PNG is. And then it is only for PNGs with a limited pallete.
Have you opened the book in the calibre editor and checked for errors? It might shows something that could be handled differently in the firmware versions.
That's about all I can think of without actually seeing the book.
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