I've used this method before and it works fairly well. You may want to copy the file called "pdf2xml.exe" from the "Mobipocket Reader" program file into the "Mobipocket Creator" program file. The latest version of the reader (6.1) has a more recent version of this file which works better in some cases.
astra_lestat, look in the My Documents\My Publications folder. That is where the Creator will store the files by default.
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