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All of the books I've uploaded to Amazon were either from Word files or Mobi files, and all had functioning TOCs in them. When I upload the books and checked the preview function of the DTP server, the TOCs did not work. I have assumed that the TOCs do work on actual Kindle devices, but as I don't know anyone who's purchased any of my books from Amazon, I haven't gotten any feedback on it.
I can only say I hope they work as they should, because Amazon's tech support on Kindle publishing has been pretty lax, and I don't expect them to put any effort into changing something on their system (unless it's a major glitch).
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