[odamizu]

I figured it out!

This is what the publisher used, which produces successful KFX with a big initial dropcap: "Hello there."

<p class="x03-CO-Body-Text">“Hello there.”</p>

p.x03-CO-Body-Text::first-letter{
	font-size:2.6em;
	line-height:0.85;
	float:left;
	margin:0 0.05em 0 0;
}

But in two instances, the dropcap also needed italics, and the publisher put the quote mark outside of the italics, which caused kfxgen to fail:

<p class="x03-CO-Body-Text">"<i>Why is the quote mark outside the italics??"</i></p>

But if they had moved the quote mark inside the italics, kfxgen would have succeeded:

<p class="x03-CO-Body-Text"><i>"Why didn't the publisher do it this way?"</i></p>