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1. I preferred ChainLP but now I write tiny scripts to produce meta file for images and call kindlegen to generate mobi files directly. You may also try calibri and similar softwares.
2. I couldn't find it quite useful to jailbreak the device.
3. If you payed the cost to remove the ads, you may jb the device and put your own images in. Not that difficult if you have basic Linux knowledges.
4. Mail the document to the address Amazon assigned to you. Or you can use the internal web browser (webkit based) to open the page on the device.
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