I did some research about images over the weekend and found some pointers and guidelines for using images in e-books. This site is a good one that gives recommendations for image size for the cover art and also images inside the book. I think we should follow the recommendations for the kindle, as that is the device that has the most limited display of graphics. The recommended size for the cover art is 600 pixels wide and 800 pixels high, so that is something to keep in mind when designing the cover. Interior images should be no bigger than 450 pixels wide by 550 pixels high. Also, with the kindle it says that the maximum size of the image should be no bigger than 63 kb. Lastly, it recommends using .jpg or .png images as they convert easiest to e-book.
Links in InDesign is not too difficult as long as we don't use a lot of them. We can create interior links as well with a little extra work. I found some really good tutorial videos that I bookmarked for our diigo group that gives good instructions for images, links, and other aspects of creating an e-book with InDesign.
Last of all, in my searches I came across this page from Amazon, that provides several different programs to help facilitate publishing for the Kindle. Two on this page caught my attention. The first is a Kindle previewer that allows you to see what your e-book would look like on an actual kindle. We can use this to test our e-book when it is made to make sure everything flows well. The other available download is probably the best of the two. It is an plug-in for Adobe InDesign that will allow us to publish our e-book directly to the Kindle format instead of needing the extra step with Calibre. That is nice because we can create our e-Pub and Kindle book with the same program.