YOu should try BookDesigner.
Calibre is very bad with formatting, Bookdesigner is much better.
As for pictures, you may lose them though...
BTW, does anybody know how to convert a PDF to LRF (or some other format) without page numbers, headers, and footers? It is very annoying to have these from the PDF all over the LRF file. I tried to look at all the options in BookDesigner, but no luck.
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