I don't want to sound negative, but the best advice I can give you is "don't do it". The PRS-700 displays PDFs reasonably well (as well as any device with a 6" screen can) and conversion from PDF to other formats rarely works terribly well - one generally has to do a lot of "cleanup" on the result.
A tool which seems to work as well as it can be done is Book Designer, but even with that you'll need to put in a lot of work to get a nice-looking LRF book. See my Book Designer tutorials for details of how to use it.
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