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The XHTML export function includes an export of the page margins to the <body> tag. Unfortunately, the effect of this is to create a one inch wide grey border on the screen. This border has no counterpart in the AbiWord document, and so shouldn't appear.
Latest CVS should fix this problem. We now export padding, instead of a margin, and it's contained within an @print rule, so it will only show up when printing a webpage.
This seems to be fixed. Closing.