Here's a way to get drop cap and smallcaps on the first paragraph after a chapter heading.
Note that the drop caps style has been tweaked to place the drop cap nicely - this should work the same for almost any font. Also note that the reduction in size for the smallcaps also applied to the drop cap - without the reduction in size the font-size specified would be smaller.
I hope this gives some useful ideas to people.
Code:
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
"http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head>
<title>Smallcaps Sample</title>
<style type="text/css">
h2.chapter { text-indent: 0; text-align: center; font-size:1em; font-weight:bold; margin-bottom: 2 em; margin-top: 4 em; page-break-before: always }
h2.chapter+p {text-indent: 0em; margin-bottom: 0em; margin-top: 0em }
h2.chapter+p:first-letter {font-size: 360%; float: left; margin-top: -0.15em; margin-bottom: -0.5em; padding-right: 0.1em;}
p {text-indent: 1em; margin-bottom: 0em; margin-top: 0em; }
span.firstwords {text-transform:uppercase; font-size: 0.75em}
</style>
</head>
<body>
<h2 class="chapter">Chapter 1</h2>
<p><span class="firstwords">First paragraph</span> in the chapter, showing the the first two words are in smallcaps, with the first letter made into a drop cap, mostly done with CSS on a plain paragraph, automatically selected because it comes immediately after a h2 of class chapter. The text-transform needs a separate span - there's no way to specify first two words.</p>
<p>Second paragraph, automatically reverting to normal.</p>
</body>
</html>