There's a difference between pdf and html viewing on the iliad.
PDFs are rendered as static pages and scaled so they fit completely on the screen. If the aspect ratio is wrong, you get white margins.
The html viewer is just the gecko engine you know from firefox, embedded using the minimo browser. You can't really *flip* the page, you just scroll down the amount resembling a little bit less then one page. I believe you understand why there are no white margins, except you force them with borders.
But you're right, with some polish the html viewer might be the best choice as document viewer at the moment.
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