that's about right.
and if you're *really* dedicated, you scan a paper book, OCR it, and then follow all the rest of the steps.
(psst : "upload" is when you send a file from your computer "up" the pipes to the vast interweb ; "download" is when you bring a file "down" from the vast interweb to your own computer. so you "download" from gutenberg, and when you've finished making your book, you can "upload" it to mobileread to add to the collection. you probably know this already, but i thought i'd mention it just to avoid confusion.)