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The two most popular programs, both free, are "Book Designer" and "libprs500". Book Designer works a little bit like a word processor - you can edit the document, set up titles, table of contents, etc, and then generate an eBook in any one of a dozen or so different formats, including for the Reader. "libprs500" is a straight conversion tool - it converts many different formats to LRF, but doesn't itself have any editing functionality.
Both are excellent tools which are popular with forum members.
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