Conversion Journey: My Word-to-E-book Workflow

"My workflow for creating an e-book is much more complicated than it is for a print book. For a print book, I use Adobe InDesign and because the software provides so much control, I’m able to design the book on-screen almost exactly the way it will look printed.

Everything starts with Microsoft Word for two main reasons:

1. Smashwords requires a Word file (in the older .doc format)
2. Word produces (so far) the cleanest HTML file."

http://www.thebookdesigner.com/2011/04/conversion-journey-my-word-to-e-book-workflow/