Charleski, that was exactly it! They had charset utf-8 and encoding ISO-8859-1!
I changed it to utf-8 and the  on the beginning of chapters disappeared, and all accented characters are not gibberish anymore! Thank you!
I get really angry when I think that it was a commercial book! (I run it through the epub validator, and even after me fixing the encoding there were other errors present!) I still have got no useful answer from waterstones, and of course not only should I not have to tamper with a purchased book, but I'm actually not allowed to! (Many thanks to all the people that provided us with ways to get round evil drm, once again!)
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