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answers:

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Lulu.com is a "self-publishing" service. It appears that they used to have an api, but it is no longer offered.

I was wondering if there are any similar services in which I could use a scripting language to generate book documents (pdf, xml, whatever), and programatically place individual orders for custom books.

A: 

There is probably not an API out there for auto-converting a non-ebook format to an ebook format.

I recently attended a discussion on publishing at a software development conference. There was much discussion regarding the process of generating/converting documents to PUB-format and other e-Book formats. Apparently, it's not as simple as clicking "convert." There is a lot of manual typesetting and tweaking that has to be done to get a PDF (or .DOC, or whatever) to look right as an e-book.

Dave Swersky
Is PUB the main ebook format? Are there any others?
It looks like lulu.com will take pdfs and word docs. And it looks like Prawn is a good tool for pdf generation for Ruby.