I think all of the books on my JBL right now are in epub, and they look just fine to me. When I started out I had some books I had bought in mobi format, and while most of those worked, some of them had some kind of compression issue and wouldn't open on the JBL. I use Calibre to manage my books, but for the JBL I "send to file" instead of "send to device" (with the JBL's SD card in the card reader of my netbook) so I can arrange my folders to suit me. This last time I updated it I just sent everything in epub format.
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