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In general Calibre converts both formats very well. My favorite format to convert from is ePub so I usually convert LIT's to that first and then if needed (I'm picky sometimes) I tweak the ePub in Sigil and then convert the ePub to Mobi. If you put a TOC in your ePub (depending on the source file Calibre will often auto generate it) then your Mobi conversion should even have the chapter marks in the progress bar that a lot of Kindle books have.
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