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Even on my older Sony PRS-505, which was able to read RTF, I ended up converting to epubs after a while. I found that the RTF format took up much more space than the epub files. Also think the epubs opened quicker. If you have a lot of room it may not matter, but the 505 didn't have a lot of room to spare.
But as far as procedure for conversion, I did the same as a lot of others: doc -> RTF -> epub (via calibre).
Vic
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