I'm interested in knowing how to turn a text file into daisy format too.
 
For now, what I do when I want to read a PDF on the Victor Stream is to do what I normally do to make the pdf readable (i.e., save it as a txt file or scan it with my OCR package). then I convert it to rtf, and I use Word find and replace to clean up the formatting.
 
for example, I substitute page breaks (^m) with the word "#page." If there is a hard return after each line, but indents or blank lines between paragraphs, I replace the paragraph maarker with hard page breaks; then I get rid of all the hard line breaks by putting ^p in the Find field and hitting the delete key in the Replace field, and when I'm done with that, I substitute my hard page breaks with two hard line breaks, and I substitute "#page" with hard page breaks. This is all tedious, etc., the first couple of times, but it doesn't take that long.
 
Then I find chapter breaks by searching for the word "chapter" or for the things in the table of contents, and I turn them into headings in Word by highlighting the title text and pressing alt+ctrl+1 (for heading level 1) to alt+ctrl+6 (for heading level 6).
 
When I'm done with all of that, I save the file as html and copy it to the Stream.

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