This _may_ not be a bug but a feature!
I had a similar problem with OOo 2.0.2 but found that by typing more than a 
full line of text the drop capital then appeared correctly.
The solution was suggested by dpeach, OOo Advocate, in the following article:
http://www.oooforum.org/forum/viewtopic.phtml?t=15182

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Drop caps doesn't show
https://bugs.launchpad.net/bugs/110841
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