Continuing the saga, since it looks like HTML2LRF can't do it, either...
I managed to C/P the text from HTML to ODT (don't ask me why, but Open Office wouldn't resave it into anything but an HTML format...) Then resaved it as a Word .doc.
Word let me set the hanging indent very nicely.... I imported the doc file into Connect and loaded onto the Reader.
It works, but... In the doc format I can't get a title or author to display, and the fonts are all too small, comparitively.... Plus it imported the colors to the subtitling (remember, this is all a mangle of the BD file,) and rendered the turquoise in a very unattrative greyscale.
I think I'll figure out where to set the right margin in Word so that it renders the hanging indents to the screen resolution, then do a S&R on the soft returns, translating them to hard returns. Then a re-import to BD for final generation, but it will only render right at one screen size.
*whew*
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