I know that most of the e-readers on Android do not display formatting correctly. They're somewhat to severely broken. Moon is pretty bad last I looked. For example, if you only use text-indent and margin/padding (as opposed to physical marker) to indicate scene breaks, moon will mess you up. It's got a lot of features so it's very popular.
Fbreader and the ones derived from it are also pretty borked. I think Mantano and the Adobe RSDK based readers are better about properly displaying formatting. Fortunately when I do read on android it is mostly to use tts so I don't care so much.
PS: A pretty good test is Three Men in a Boat which you can find on MR
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