Thanks Sirtel for the investigation and explanation. I don't fully understand what it means but I can appreciate now what's causing the problem. I'm not that au fait with how to use the editor in Caliber but perhaps it's an opportune time for me to have a play.
Meanwhile I've found by trial and error that if I get Calibre to convert the offending AZW3 to a Mobi then that to an epub, the underlined text has gone. Not very scientific but it got the job done.
Thanks again guys.
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