Aura H2O How to make it so that epubs look the same in both Calibre and on the H2O?

Hi guys. Trying to load up some books on my H2O only to realize that the H2O isn't displaying fonts properly! Especially larger than average fancy letters, you know, the type that begin chapters.

Calibre displays the giant letter at the beginning perfectly, while the H2O puts a space between the letter and the rest of the world. Please see the attached images.

I tried ticking embedded fonts in Look & Feel, and output as a kepub (which I had to rename .kepub.epub in order for the H2O to see it). I also ticked Remove spacing between paragraphs (indent size 1.5 em and line size 0.5 em), made the output profile Kobo Reader and the input profile default. Finally, I disabled inserting page breaks by using a /.

I'm converting from standard epub to kepub in Calibre.

What do I need to do in order to remove the space between the S and the rest of the world on the H2O, and make it one word like it is on Calibre?

Also, is there a point in using kepub over epub? The kepub version of the book is 4kb larger than the epub version...

If this is in the wrong sub-forum, I apologize.

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