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The misplaced drop cap is probably the previewer getting things wrong (it does not use the same codebase as the Kindle itself and is exceedingly buggy, particularly in things like font size and positioning).
The image is probably the result of a wrong Calibre profile: Calibre thinks your Kindle's resolution is different. If I had a copy of Calibre on this machine with a non-broken preferences dialog I could tell you how to change it...
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