Proofreading would depend on how true to the printed word you want your electronic word...
I've scanned books and my proofreading consists of reading the book and annotating errors (using a touchscreen reader). I'll go back to the source document and update it after I've finished the book.
Layout I'm not too bothered with, generally, but I'm mostly reading contemporary novels, which have a basic layout even in print form.
I too, would not recommend text as your source document, but HTML.
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