I have upgraded my free guide on How to format for kindle and smashwords to include easy to understand pictures. I have noticed from Google searches to my site that many are asking questions regarding justifying text. I would first answer you by saying that when formatting for kindle, or Smashwords, the finished formatting will look nothing like how you format a printed book. An example is justified text. If you justify your text, then your eBook will be rejected.
My guide may not be the only way to format, but it got me approved for the premium catalogue through Smashwords to, Apple, Barnes and Noble, Nook, Kobo and Kindle ETC, at my first attempt.