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You might try using Sigil to make an epub and then Calibre to convert the resulting epub to mobi.
It's worked pretty well in my limited use. You get a TOC and even those little chapter dots.
Of course, you basically have to do the same thing as above, but you simply highlight the chapter name in the text and use the little drop down box to the left to add the header tags. But easier than doing HTML on your own.
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