I've started converting my first book to iBook format using iBooks Author. It's a pretty amazing program. It will be interesting to see how well this format and program are adopted by writers and publishers.
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So far, I've only played with interactive images. My book is a "how-to" book with lots of photos so it's really nice to be able to zoom in on stuff and fill the screen with an image. I'll also be using tables and, perhaps, 3D objects, galleries and video.
Neutron, the books are sold in the iBooks store which is part of iTunes.