Calibre will not convert DOC files directly.
From MSWord, you can Save-As Webpage-filtered to convert DOC to HTML (the filtered bit is important). Then import the HTML into Calibre, which zips up the HTML and any associated images during the import.
Save-As RTF also works but may not convert to EPUB quite as well as the HTML does for some books.
Converting from PDF is currently the least satisfactory option if you want to retain the formatting in the original DOC.
Last edited by jackie_w; 08-02-2010 at 11:00 PM.