Part of the problem could be the CSS. I had a look at the CSS for the first Harry Potter eBook and it's got a line-height of 1.4 in the body style and there are a few places that specify a font-family of Times New Roman including p. So removing the font-family and the line height might fix the problems.
But the CSS is valid and does not cause any formatting issue with ADE 2.0.1.
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