Any author considering epublishing would do well to spend some time with Smashwords Guide to Publication.
This Guide is as clear and well-written as any guide I have ever read -- in fact, better. It is a step-by-step approach to taking your novel from a word processor to an e-published novel available on every major source for e-books, including Kindle, Nook & iBook.
It took me about four hours to convert my manuscript to one suitable for Smashword's "meatgrinder", that converts your document into all of the popular email formats. It takes patience. But follow the step-by-step guide, add just a touch of patience, and suddenly you have an e-book.
Check it out at www.smashwords.com