For indenting you should use styles in OpenOffice and let the converter convert them to CSS. In this site there is a forum on an OpenOffice add on that can convert your document. It is called writer2ePub. Once you have the ePub you can use KindleGen (a free download from Amazon) to create the mobi. Calibre is a great tool for private use and managing eBooks but it gives you less control over the creation of eBooks you might want to sell.
Images can be floated left or right to allow text to flow around them if desired. This is the only movement supported. Otherwise they should be just inline or between paragraphs.
Color will normally carry through although on grayscale devices it will be showed as a shade of gray so this should be considered in color choices. Bold, underline, italics, paragraph centering will be preserved. Fonts should be left as a choice for the user unless there is a need for a specific one. It is possible to embed a free font inside a document for ePub but this may or may not transfer to the mobi depending on the target device. Better to choose a generic serif or sanserif and let it go at that. Sizes are better left relative as the screen size of the reader is unknown to you. Intermediate sizes can be used. You can leave the base font alone and then scale special needs using ems to size them any increment you need.
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