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I use Bookbaby for distribution but have never used any of their conversion services. I imagine that Bookbaby, or any service that offers a (relatively) low fixed price for conversion, must use a mostly automated conversion process. I would be very wary of automatic conversion from PDF even for simple layouts. If you want a good result, especially when talking about a complex format with images, then I think you will have to put in a lot of work yourself, or be prepared to pay someone to put that time in for you.
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