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Bummer. I did find one solution yesterday, but it's pretty involved. I installed the latest mobipocket (advanced) in a Windows partition, converted my pdf to .prc and then used calibre to convert the .prc to mobi. It's beautiful! Formatting, like indent, was mostly lost, but it's better. Tables converted correctly, paragraphs are now, well, paragraphs. Numbered lists are formatted correctly. Really nice. If only calibre could do this en-masse.
Still, I'm thinking I may send my K2 back. Unfortunately, I'm traveling out of country in January so I probably won't see it for a few months. Bummer.
Thanks for the replies.
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