Here's a link to the htm file that exhibits the error.
http://www.babblebooks.com/BDbug/scaramouche.htm
the problem is the line:
<P><h3>II. ²The Aristocrat</h3>
(Ignore ² and anything else that looks odd, these are flags for later post-processing and don't affect the TOC issue.)
http://www.babblebooks.com/BDbug/toc1.jpg
1st screenshot shows how chapter II appears in TOC if Aristocrat is changed to "Arist°crat"
http://www.babblebooks.com/BDbug/toc2.jpg
2nd screenshot shows how chapter II drops out when changed back to "Aristocrat"; also shows Configuration/Settings window
Don't think that "Make Sony" can have any impact -- because the error manifests on load, before the target book type is selected.