Alternatively just open your file in a text editor and re-save it as UTF-8. Make sure to delete any encoding statements at the start of the file, as they may not agree with the actual encoding it's been saved as.
The width and height probably wouldn't have anything to do with it. I've never seen this problem with an html file, though typically I'll be working with html that was extracted from one of the crappy lit files before I send it to Calibre. I think Lit files may all use UTF-8...
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