I tested further today and figured out that this is an issue with the EPUB file being created in Calibre. If I use LRF or MOBI as the output format, the hyperlinks work but if I use EPUB, they don't work at all, regardless of the app I use to open the file. Nothing to do with Stanza.
Since I'm using the same html file to test, I know the file itself is not the problem. I get book with working hyperlinks unless I use EPUB. I also noticed that, at least in Stanza, the file is being read as an image, not a text page.
Any suggestions? Here is a typical text file. I then change the extension to .html and drop into Calibre and convert.
<html>
<body>
<h2>Table of Contents</h2>
<p style="text-indent:0pt">
<a href="/Users/Katelyn/Downloads/callwoa1.html">Part One</a><br/>
<a href="/Users/Katelyn/Downloads/callwoa2.html">Part Two</a><br/>
<a href="/Users/Katelyn/Downloads/callwoa3.html">Part Three</a><br/>
<a href="/Users/Katelyn/Downloads/callwoa4.html">Part Four</a><br/>
<a href="/Users/Katelyn/Downloads/callwoa5.html">Part Five</a><br/>
<a href="/Users/Katelyn/Downloads/callwoa6.html">Part Six</a><br/>
<a href="/Users/Katelyn/Downloads/callwoa7.html">Part Seven</a><br/>
</p>
</body>
</html>