Drop Caps in iAuthor

I have the best luck putting the drop cap in a Text Box and positioning where you want it.

• You can inset or in the gutter
• You can add a custom shape for a tighter fit if you don't want a boxed look
• You can also set your letter on the page, scale it up, and take a screenshot, or create the image. After adding the image use the alpha tool to knock out the background and the text will fit nicely

Adding some simple examples below.

Here is the same with Layout Boundaries turned on to see the outlines and custom shapes.

This example uses screenshot images and Alpha Tool.