I have over 500 books in RTF and I used Calibre to convert them all to MOBI format and as far as I can tell (I only got my Kindle yesterday so I am only reading the first one) they converted fine and have all loaded onto the Kindle 3 okay. I don't know if the Kindle is supposed to take RTF but that's my solution. I even converted Pdf's to MOBI and again they look fine, with no reflow problems.
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