I'm learning to write for the Kindle.
I started by putting the text into an HTML document using my ancient copy of Adobe Pagemill. Add an anchor before each new chapter and number it.
To insert images, I first size portraits to no more than 600 pixels wide by 800 pixels high. Make sure the images are in the same hard drive folder as the HTML file.
Now write your table of contents and go back through the text to add proper links for all the chapter and image anchors.
Open your free copy of Calibre and convert the resulting HTML document to a MOBI file, then transfer it to the Kindle using the USB cable.
This photo has been published here.