I just thought I should let people know about a perl script my friend Lasar wrote. I was looking for a quick way to convert huge text files into something readable on the ipod, and this is what came of it. I gave him the specs/info he needed, and he wrote it. Check it out if you're interested. The documentation is a bit shakey but it's not too complicated. Pictures of how everything works/looks once the book is on the ipod are availbale on the site. Enjoy.
http://www.liepins.net/ipodreader/
Note: This can currently only be used under the terminal. However, if you know how to code, you should be able to put a gui on it pretty easily.