1. Pictures are not drag and drop. Click on the insert menu and select "insert picture." (Or click F5).
2. The underlined links are a "feature." Sorry. (But if links weren't underlined, then you wouldn't realise that there were
If you don't like an underlined first word, then try adding section numbers, then only the number is underlined in "1.
Monkeys are Fun."
3. As I have pointed out in my BD hints and tips, it is a good idea to make a BD book file very shortly after importing the book. (Go to Make ebooks and select Book Designer book. This is typically stored in my computer/c drive/program files/ Book Designer 4/BD.)
I've covered some of these queries in the Book Designer Hints and Tips thread here:
I hope it helps.