I converted a LIT (Microsoft format) book to both LRF and EPUB, and I preferred the LRF format - it seemed to be closer to the original - font sizes, margins, white space between sections etc. I've yet to try converting from other formats to EPUB.
However, EPUB is certainly the format for the future (because it is an open standard) and so I will be supporting it as much as possible (buying EPUB books).
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