I have uploaded word (docx) files. I only have a couple of books that have Tables of Contents including the one I just uploaded and those seemed to work fine. If I remember correctly when I was first testing all this it did not work properly with an older .doc file.
Formatting is still a bit hit or miss. I know that one of my poems in the poetry book has specific indentation requirements and putting spaces in did not work, but using tabs in the .docx file worked. I have no idea about other types of formatting issues.
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