Hi there,
I just started experimenting with making PDF ebooks using Word 2007 (any wordprocessor would do to be honest) and Acrobat Pro to generate the PDFs. Again, any free PDF software will also do just fine. I think the key is to have the page size match your reader. Looking at Jellby's excellent PDF ebooks, I've learnt that 3.54 inches by 4.72 inches works really well for a page size (with no margins). Once you have the WORD document formatted exactly the way you want, you can then just convert to PDF (make sure that the page size is retained).
The neat thing with PDFs is that all the formatting will be exactly as in your Word file so you do a lot of fancy things like Drop caps, etc and have it show up in your PDF. I also find that with a properly formatted PDF for the PRS-505, the page turns are almost as fast as LRF files.
The advantages are that the formatting looks better (if you put in a bit of work in your original Word file) and you can also get true full page justification with hyphenation (which looks far better than the LRF justification). The flip size ofcourse is that changing the font size makes things look terrible so you have to be content with reading the whole book in one font size (not an issue for me).
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