hyperref overfull box

Question

Sometimes using hyperref can produce overfull boxes because hyperref does not seem to allow its hyperlinks to be broken into multiple lines

For exampled the italicized text in the highlighted bibliography entry contains a hyperlink which may be broken into two lines. How do I make it happen?

I can't use pdflatex as I am using eps images. Using XeLaTeX produces figures at arbitrary places as shown below:

I think this happens due to a conflict of packages that I have. These are all the packages that I am currently using:

\documentclass[paper=A4, fontsize=12, toc=listof, toc=bib]{scrreprt}
\usepackage[inner=2.5cm, outer=2cm, bottom=3cm]{geometry}
\usepackage[super,sort&compress]{natbib}
\usepackage{natmove}
\usepackage{graphicx}
\usepackage{amsmath}
\usepackage{amssymb}
\usepackage{amsfonts}
\usepackage{fancyhdr}
\usepackage{setspace}
\usepackage{lmodern}
\usepackage[hypcap]{caption}
\usepackage{imakeidx}
\usepackage[hidelinks]{hyperref}

Only pdf chain produces the correct output except for the overfull hyperlinks ofcourse.

Answer 1

From hyperref's README:

Wrapped/broken link support

Only few drivers support automatically wrapped/broken links,
e.g. pdftex, dvipdfm, hypertex. Other drivers lack this feature, e.g. dvips, dvipsone.

Workarounds:

• For long section or caption titles in the table of contents or list of figures/tables option linktocpage can be used. Then the page number will be a link, and the overlong section title is not forced into an one line link with overvull \hbox warning.

• \urls are caught by package breakurl.

• The option breaklinks is intended for internal use. But it can be used to force link wrapping, e.g. when printing a document. However, when such a document is converted to PDF and viewed with a PDF viewer, the active link area will be misplaced.

  Another limitation: some penalties are "optimized" by TeX, thus there are missing break points, especially within \url. (See thread "hyperref.sty, breaklinks and url.sty 3.2" in comp.text.tex 2005-09).