See attached html file. Works in Safari 3 but not in nightly build.
Created attachment 19742 [details] Show case of the bug
Worth to say that the bug is also float depended. Confirmed in the latest Webkit r31030.
Created attachment 19747 [details] Recognize existing floating first-letters
Comment on attachment 19747 [details] Recognize existing floating first-letters r=me
Fixed in <http://trac.webkit.org/projects/webkit/changeset/31065>.