I just tried this by sending a heavily formatted Word document to my kindle. It worked nicely, but some formatting was lost - level 1 headers looked like regular text, but level 2 headers were bold and in a larger font. Some graphics had circles on them that were placed in Word - the circles translated as separate graphics. I didn't look to heavily at the results, just glanced at them, but this seems more a rough-and-ready translator than anything delicate. I might get better results by saving as a filtered web document and then tweaking in sigil - but that's also a lot more work.
I was impressed at the interactive table of contents though.
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