I do all my formatting in inDesign and export to ePub or mobi using the built in ePub export or the Kindle export plugin from amazon.
I've pretty much got the whole ePub thing sorted out but have come across a problem when it comes to exporting the mobi file. If i have images in the book they all seem to do their own thing with regards to size. I find that most of the images scale down and display a lot smaller than i would prefer on the kindle.
I've tried playing with the export settings, optimise vs original vs formatted, not formatted and nothing really changes. Also i've physically change the size of the image in the inDesign docuement and still, no change.
I'm hear as a last resort before I lose my mind. Anyone out there that can help?
The advise I got from the Kindle people when I had the same issue was to use Images/Copy Images/Original. Remember that users will have the ability to zoom out the images.