Quote:
Originally Posted by Piper_
I usually cheat and convert to epub first, then use Sigil to set up my TOC. [Tools -> TOC Editor]
Then it converts to mobi even with the little chapter markers in the progress bar. 
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I agree with this 110%. The Calibre/Sigil one-two punch
can't be beat. Whenever creating/converting/editing I always use Sigil even though my final format is mobi for my Kindle.
Oh, and welcome to the MobileRead forums.
- Byron Followell