Here are my recommended guidelines on how to create a squidbook.

1) Create an Introduction lens and include the Title and a short description of your book. Then add a Table of Contents with all the Chapter headings in your book.
Create a text module and place the content of your first chapter into it. At the end, create three links with one pointing to the "Table of Contents", one pointing to the "Previous Chapter" and one pointing to the "Next Chapter".
Add a link list moodule to contain any references if any.
Add a Guestbook module at the end.

2) Create a second lens (recommend using the same name as the first lens)with a numeric sequence added.
Create a text module and place the content of your second chapter into it. At the end, create three links with one pointing to the "Table of Contents", one pointing to the "Previous Chapter" and one pointing to the "Next Chapter".
Add a link moodule to contain any references if any.
Add a Guestbook module at the end.

Of course, you can add any images or multimedia objects within your text.

3) Repeat step 2 for all subsequent Chapters.

4) Go back to your first lens and make all the Table of Contents into links to each of the corresponding lens.

5) That's the whole idea in a nutshell. You have created a squidbook.

Notice I have not done anything exotic. I have used all the standard modules of Squidoo and have created a book that is easy to navigate and may include multimedia objects that traditional books and eBooks lack. It is easy to modify and it is easy to publish.

Warning: The Text/Write module has a limit of 2500 characters maximum. However, I found the List module have no limit so that can be used instead if your text is larger than 2500 characters.

Also, I've been informed that Squidoo expects at minimum 4 modules per lens. You may want to add an Amazon module at the end.