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.azw is the file extension Amazon uses instead of .mobi, to indicate it came from them. They are the exact same format, in other words. Originally, it was a modification of .prc (Palm Resource Code) for PalmOS which is why it can also use the .prc extension.
If your .azw cannot be opened by mobi2mobi, and calibre cannot convert it, it is undoubtedly locked by DRM encryption, as most ebooks are. After getting the .azw from Amazon your choice is to either use it as-is, and only on the device it was authorized for at the time of download, or to use a third-party tool to strip the DRM from your books, after which both calibre and mobi2mobi can read and convert them.
To start you on your journey, I recommend doing a Google search for "Apprentice Alf".
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