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1) Marvin exports to an XML format (*.mrvi) that contains highlights, notes, vocab, etc... for all books in your library. Unfortunately, this cannot be imported back yet.
2) A DB is required for performance reasons and to perform certain complex tasks.
3) If you're into iFunbox, pulling everything out of Marvin's /documents directory and the database from /library is pretty much the safest backup you can make. Restoring involves putting everything back in the right place.
4) Soon, full backups and restores will be much, much simpler.
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