Okay, I got it! I hope.
I took Word's original htm file, converted it in encore and then tweaked it with Sigil. (I dream in HTML and CSS, so that's a breeze)
Encore actually got rid of a lot of the code that MS Word put in there and created the breaks.
The book now looks exactly the way I want to in my Sony reader (except for the annoyance of having a page number on the cover) and I'll have to take my chances with other readers.
The doc is really just a cover page and a whole lotta text with very little formatting, so I am feeling confident.
Now let's hope Lulu will accept the ePub as is...