If you're going to include photos or other types of images you probably want to consider how colors will display in Kindle's 16 level gray scale screen. You can tweak images in some photo editing software to 16 gray levels and make necessary contrast and brightness adjustments to optimize for the Kindle screen.
You might also make the images native Kindle screen size (800x600 for K2 and K3, 1200x 824 for DX/DXG) and make sure text on diagrams is readable at that resolution so the reader will not have to pan and zoom.
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