What source material are you using - if the source is decent, then you should have no problems with something like libprs500, whereas if you're getting bad results, it's likely to be a bad source...
The easiest is almost certainly going to be the Reader's native RTF support, but I get good results even with a basic text file & txt2lrf, using the following 'template'. Although a decent HTML file would probably be better, if I want to create my own books from raw text, this suffices for me...
Code:
<head>
<style type='text/css'>
.break { page-break-after: always; text-indent: 0em; }
.drop { text-indent: 0pt}
.drop:first-letter { font-size:xx-large}
.centre {text-align: center; }
</style>
</head>
# Title
# Author
<p class="break"> </p>
///Table of Contents///
## Chapter 1
<p class="drop">Paragraph1.
Paragraph2.
Paragraph3.