This is a bug in mobile Adobe Digital Editions, see the attached screenshot from Windows Sony eBook Library which also uses mobile ADE and has the same behavior.
It is still a bug, but Jinke will need to forward it to Adobe. I doubt that the image placement can be fixed. This is probably due to the images being after the text in the PDF, even though they appear before the text on the page. Skipping the first character of a line is the most serious issue, but the 1st "character" is actually an image in this case with dropcaps being implemented by wrapping text around the image. This is again hard to fix, and the result would probably be better if the letter images were in the PDF where they are actually used.
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