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There are few tools available to create epub 'out-of-the-box'. The most expensive one is Adobe Indesign. Even that one has flaws.
Besides, coding epub by hand, which isn't as hard as it sounds, is another option. Fortunately there are some very handy coders who make our life easier. The most easy to use and best imho is Sigil. Why? Because it is easy and gives a lot of control.
Some people will mention Calibre, but that one is better for library management. You can do conversion, but your result may vary.
Other application that can create epub are Atlantis Word Processor and there is also a plugin for Open Office.
Sure, it is still in it's early stages. However, I do think the drive has to come from small coders. Big companies are not (yet?) interested.
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