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This is a limitation of the epub format. It insists on having a cover embedded in a html file. When converting this cover, to an image, you will get either white boders or a distorted image if the aspect ratio of the image is different from that of the viewer used to render the title page.
I've added a workaround for the next release that will detect calibre created title pages and extract the cover from them, so you at least wont have this problem with calibre created epubs.
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