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Welcome, John.
The best way to get a handle on formatting is to look at books already live on Smashwords or Kindle. Smashwords has a very detailed style guide that's fairly easy to follow. What can I say about Kindle? Indent new paragraphs 5 spaces but not with tab, no space between paragraphs.
It should take you no more than 1/2 hour in Word to make it happen. I have been using Open Office but that's more of a geeky kind of program and not so much geared to manuscripts. Knowing Unix probably helps, I don't but my friend does. I switched to Word and it's more in English but you have tons of hidden coding courtesy of Microscoff.
I will say the more programs you send a file through, the worse off you are. 95% of the time (guessing) I wind up putting the document into notepad to remove all the formatting and then starting over clean.
You can always ask, someone here probably knows the answer. You'll probably get plenty of answers. Most of them conflicting ;-)
Robin
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