Windows Desktop MobiPocket Reader does not "read" ePub, it instead imports it (converts it to MOBI) and reads the MOBI version. Once you have converted it under Windows, the iLiad will read the resulting MOBI file.
MobiPocket's current ePub conversion is poor, and FBReader 0.8.14 on the iLiad may be more to your liking for ePub (also poor support, but from a better reader application). I prefer FBReader 0.8.4 on the iLiad, which does not support ePub but if you rename .epub to .oebzip it may work anyway (because many ePubs are essentially OEB ebooks).
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