The eBook reader for the iPhone has been updated with a new release. Changes are:
New options in Preferences panel: "Smart" text file conversion--if it's ON, it's the same behavior as always; if it's OFF, you might have better luck with lists, or with books that don't use double-newlines to denote paragraphs. Also, you can turn off HTML table rendering; try this if tables make your book's layout too wide for the iPhone screen.
More subtle progress indicator on launch, and improved cover splash if you have cover art for your books.