Great info, thanks.
Where I think I can really add value is in the ability to customize your LRF files. You can set almost any parameter such as font size and margins.
I have had a look at manybooks.net and I can see that they offer books in LRF as well. I don't want to recreate what they have done so your input is very much appreciated.
I have fixed italics but I am confused by emphasis. -- does not always have a termination of -- to indicate that emphasis should stop. In html version of Emma by Jane Austen for instance, the html does not contain any emphasis. I would like some advise on how to implement emphasis, I cannot see anything in the Project Gutenberg documentation.