Revised 30 Jul 11

Cookbook for e-pubbing on Kindle and Nook: very methodical and conservative method
This assumes using Microsoft Word, Notepad, and Calibre, and that the document is in one file.

Edit the MS-Word document:
Open manuscript in MS-Word (do NOT insert page numbers or Headers/Footers)
Turn on the Outlining toolbar (View, Toolbars, check Outlining)
... Replace accidental double spaces with single spaces.
... Replace all ### with blank lines.
... Make sure that Paragraph indents are created with paragraph formatting, NOT tabs (Format, Paragraph, Special, First line)
... Replace underlines with italics.
... Choose font (Georgia).
... Replace -- with m-dashes.
... Search for and remove 'Manual Line Breaks' (Edit, Find, Special, Manual Line Break)
... Insert hard page breaks before each chapter.
...Highlight each chapter heading and select Heading1 in the outlining menu (the other text (should appear as Body Text by default)
... Append 20 blank lines to end of manuscript (to avoid visual clutter with Kindle's TOC at end of manuscript).
Do not at this point create a Table of Contents.
Where you want the Table of Contents to be, put in, (Include the asterisks. They will later be removed.)
***
Table of Contents
***

Save the manuscript.

Create a folder for the book.
Move the cover image into the folder. (If the minimum cover dimension is 750 pixels, it will work for both Kindle and Nook.)
Move the author bio into this folder (or know where to find it)
Move the blurb (which also contains the search terms) into this folder.
Create two sub-folders for the manuscript, Kindle and Nook.
Move a copy of the manuscript word document into each sub-folder.

Go to the Kindle sub-folder
Open the word document
Move cursor to directly under Table of Contents (two lines below the first ***).
Create a Table of Contents (Insert, Reference, Index and Tables, Table of Contents) Uncheck Show Page Numbers. Click okay.
Move the cursor to the start of the Table of Contents: directly to the left of the T.
Insert a bookmark (Insert, Bookmark). For the bookmark name, enter toc and click add.
Move the cursor to the start of the text
Insert a bookmark. For the bookmark name, enter start and click add.
Save the manuscript.
Save it again as (Save as) Web Page, Filtered.
Close the document.

Go to the Nook sub-folder
Open the word document
Insert page numbers (I number starting at the title page) (Insert, Page numbers). Select top of the page and no number on page 1.
Move cursor to directly under Table of Contents (two lines below the first ***).
Create a Table of Contents (Insert, Reference, Index and Tables, Table of Contents) Make sure Show Page Numbers IS checked. Click okay.
Move the cursor to the start of the Table of Contents: directly to the left of the T.
Insert a bookmark (Insert, Bookmark). For the bookmark name, enter toc and click add.
Move the cursor to the start of the text
Insert a bookmark. For the bookmark name, enter start and click add.
Save the manuscript.
Save it again as (Save as) Web Page, Filtered.
Close the document.

Open Notepad (The following assures that the TOC button on a Kindle [or Nook] will bring up the manuscript's Table of Contents.)
Open the Kindle version of the htm version of the document. (You'll need to select All Files in Notepad.)
Search for *** (the first set of asterisks)
You'll see
<p class=MsoNormal>***</p>
Or something like
<p class=MsoNormal><a name=toc></a><b><span style='font-family:Georgia'>***</span></b></p>
Delete from <p to /p>
In its place insert <div id="toc">
Search for *** (the second set of asterisks)
You'll see
<p class=MsoNormal>***</p>
Or something like
<p class=MsoNormal><a name=toc></a><b><span style='font-family:Georgia'>***</span></b></p>
Delete from <p to /p>
In its place insert </div>
Save the file.
Open the Nook version of the htm version of the document, repeat the above.

To Create the Kindle Version
Open Calibre
Click Add Books.
Navigate to the Manuscript's Kindle subfolder
Highlight the .htm file and click Open. (This is a slow operation)
The first entry will probably have a spurious title. Don’t worry about it.
Click on it, and then click Convert Books.
On the next screen, set Output Format to MOBI
Enter the Title and the Author.
Change cover image (using the browse button)
Hit OK (and wait. This might take a long time. The spinning dial at the bottom will stop when finished.)
Move the completed MOBI file to the Kindle subdirectory (to have it in a convenient place). Calibre stores the file in Local Disk (C:)/Documents and Settings/Carl Frederick/Calibre Library/Carl Frederick/ 'book title'/
It's a good idea at this point to look at the book with the Kindle Previewer

To Create the Nook Version
Open Calibre
Click Add Books.
Navigate to the Manuscript's Nook subfolder
Highlight the .htm file and click Open. (This is a slow operation)
The first entry will probably have a spurious title. Don’t worry about it.
Click on it, and then click Convert Books.
On the next screen, set Output Format to EPUB
Enter the Title and the Author.
Change cover image (using the browse button)
Hit OK (and wait. This might take a long time. The spinning dial at the bottom will stop when finished.)
Move the completed EPUB file to the Nook subdirectory (to have it in a convenient place). Calibre stores the file in Local Disk (C:)/Documents and Settings/Carl Frederick/Calibre Library/Carl Frederick/ 'book title'/
It's a good idea at this point to look at the book with the Nook application