JSWolf and RWOOD have given great answers.
Regarding PG books, I simply run the text files through a program I downloaded from one of the librie groups at yahoogroups, which strips out the extraneous HRt characters so the text within each paragraph flows nicely on the Sony Reader and I don't bother with fancy tables of contents and links to each chapter, etc that are possible with BookDesigner and other tools you can download from this site.
But then I haven't shared any of the e-text files I have since they are not ready for prime-time and anybody can simply download the same files I start with and do the same thing with no trouble whatsoever. I enjoy reading them and simply haven't got the time necessary to do more to fancy them up.
There's even a Microsoft Word macro somewhere in this forum (or at least a link in one of the sticky FAQs on preparing files for the reader) that does the same thing but I don't have Microsoft Word on my computer, and it actually takes longer to use a macro on a text file in WordPerfect than to use the standalone converter program.
So it all depends on the reading experience you want -- there are wonderful books (many of them!) which the gracious members of this forum have posted for download, already fancied up with linked tables of contents and much more work than I do on files for my own reading, so you already have a wonderful library available for free.
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