The garbled characters problem is fixable. It needs a setting in the epub that is often absent. The easiest way I have found to fix it is with the "Modify epub" plug in--Select the "Encode HTML in UTF-8" option and run the plug-in. (You can set this to be the default configuration for the plugin, so you only have to invoke the plug in on the book and hit return to do it).
I now do this with each epub I add to Calibre and I haven't had any problems with Amazon's conversion process.
Good luck.
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