Hi guttaperk,
CHM files used to give me a headache.
When you print to PDF, you get ugly "Next" and "Previous" buttons.
Some converters will output RTF, but I had to go in Word to remove all graphics and fix the formatting.
Bottom line, these methods produced books that were unsuitable for use on mobile readers because you couldn't easily navigate.
Then I realized that CALIBRE converts CHM.
And man... It does it beautifully!!!
It strips all the annoying graphics and gives you a mobi file that is fully linked and complete with chapter navigation.
One word only: Calibre. It's the best thing since... Kindle...
Did I mention Calibre? Yes, Calibre... LOL...
Good luck with your conversions!
Wishing you a fun day,
Andy