TeX4ht (the 8/3/06 version in MikTeX 2.5) fails to
create an acceptable html file when used with hyperref.
Bibliographic references generate the error message
"Missing \endcsname inserted".
This is a bug in TeX4ht and has been reported and
fixed. (See
http://groups.google.com/group/comp.text.tex/browse_frm/thread/b7a75374e828dd86/effeef24c816dc4e?lnk=st&q=htlatex+endcsname&rnum=2&hl=en#effeef24c816dc4e
for a discussion.)
I have verified that if the files in the directory
tex\generic\tex4ht are replaced with the current
version available at
http://www.cse.ohio-state.edu/~gurari/TeX4ht/bugfixes.html
then this bug goes away.
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The bug has been fixed. The fix will be made available with the
next update cycle. You can watch the MiKTeX project page
for further information on the next update.