I like no indent and about a half line-space between paragraphs.
In a pbook, you would usually have no line space between paragraphs, or else you need a full line space between paragraphs. Anything in between would create type-setting problems where the other page in the spread wouldn't line up. On ereaders, there is no spread (that is, 2 pages that face each other), no need to align pages in a spread, and thus no problem with anything less than a full line space between paragraphs. So bring on the half line space!
eP
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