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What are the best source formats to convert?
In order of decreasing preference: LIT, MOBI, AZW, EPUB, AZW3, FB2, DOCX, HTML, PRC, ODT, RTF, PDB, TXT, PDF
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The best source format is ePub. There is no way in this world that LIT and Mobipocket (Mobi and AZW are both Mobipocket) are better source formats then ePub.