[rjcroy]

Just to second jhowell, I think you need to file this under the 'Why is the icon on the Save button a floppy disk?' category. The epub format uses an imperfect analogous word to denote location in a book. This can be confusing if the analogy is pushed.

Interesting design choice that the Kindle puts aside the idea of a page and simply uses Location instead. A new unit for a new platform.

The page numbering behaviour you described is exactly how epubs on my Sony Reader have always worked. It's not a bug.