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Solved it!
Turns out that I had made the mistake of indenting all the paragraphs in the document with TAB characters. For some reason, when I converted the document, neither the .epub or .mobi formats recognized it, or recognized it has paragraph breaks.
The correct way to do it was to simply set the first line indent at .5 inches in the margins settings and it was all good.
All you guys probably already knew this, so I feel a little videopope-come-lately to the party, but I think from now on I will use this method for indents, rather than using tabs. I think I picked the habit up WAY, WAY, WAY back when I learned how to type on a typewriter. It feels a little weird not to hit the TAB key when starting a new paragraph, but I'll get used to it.
Indesign is forcing me to start using paragraph styles to organize the document... makes document-wide edits a lot easier later on. Its amazing what you can do when you actually learn to use the tools the way they were designed.
Does this make sense to you guys? That using TAB characters instead of setting the first line indent was what was wrong?
Cheers
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