I too have problems converting to ereader PDB and keeping the formatting intact. I start with a nonDRM mobi. I have the pdb output set to ereader. The images and some formatting comes through, but in particular the italics disappear. I do not have any problem when I go the other direction (original PDB to mobi). All formatting works that way.
I experimented a little by producing an OEB html from the mobi and the resulting html had the italics there. It's just when you go the next step to pdb that the italics disappear.
I really would like to have the pdb with italics intact since at lot of meaning in the reading is lost without them.
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