I did it again! This time I automated the insertion of the tier-two TOC links to be EVERY word in the dictionary; all 110,000+ words!
Not very practical, but interesting idea nonetheless. Somewhere in between is the optimal number of tier-two TOC links i.e. every 160th word vs. EVERY word.
I attach a .html file that contains just the final extracted TOC entries with NO corresponding <a name=> or <id=> links in the main dictionary file.
As a result, this file is basically just a wordlist (including
duplicates 
)...
BTW, Mobipocket Creator's 'Add Table of Contents' seems like a very powerful tool for adding external TOC's that can then be changed to be an inline TOC with a little editing i.e. search & replace.
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