To all who replied, thank you very much for your input.
Someone suggested using docx format for conversion. I have never used it before but I converted one of my rtf files to docx and run it through Calibre and hey presto it produced a perfect lrf file - so easy.
Whenever I have bought a new computer I have always had problems getting BookDesigner to work, now I am going to have the pleasure of removing it from all of them.
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