Good to have your company, Pamela.
I wrote to Mark Coker (founder and CEO of Smashwords) about this problem this week. I've been waiting for over eighty titles to be approved at Amazon, Sony and Kobo (Barnes & Noble are very quick) for what seems an age.
Mark replied to explain that several retalers are changing the goal posts on how material is presented. He also wrote about the problem in his newsletter this morning.
If you pop into
www.smashwords.com, you'll find the article there as Smashwords Author/Publisher Alert - March 5, 2010.
Good to know that Mark and his team are on the case. Good luck. Neil