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I believe if you want to have a decent TOC in a Smashwords doc (you are uploading a Word.doc and not a .docx aren't you?) you must use bookmarks (for your chapters) and hyperlink your TOC entires back to these chapters. If you don't use the bookmark/hyperlink process, the meatgrinder isn't going to be very good to you. If you actually label your TOC entries "Chapter ***", then the meatgrinder will pick up these headings automatically (they say) but I wouldn't trust them. Whatever you want in your TOC, use bookmark/hyperlink. Also if you want to link "back" from your Chapters to the TOC, be sure and bookmark the TOC heading with the name ref_TOC. Smash will be confused and will add the heading to your TOC as another entry if you don't.
You have downloaded Mark Coker's Smashwords Guide, haven't you. And he and his team are very prompt at answering questions.
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