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I've never done CBR/CBZ conversions either, but I would assume "Disable processing" means "don't use all the options at the bottom, like despeckle, normalize, sharpening, trimming, etc."
If the JPEGs are of good quality, I think you should probably avoid messing with them. If they need clearing up, you might want to let calibre do it, or you might want to do it by hand.
Make sure your output profile (Common Options ==> Page Setup) is set to "tablet" or the JPEGs may be resized to fit the resolution of your currently-selected default output device.
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