These steps have worked for me on several machines. Every machine is a bit different, so your mileage may vary.
On OSX? I've written up guidance for installing the EBW tools on OSX here.
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The first steps are to get Ruby and Jekyll installed. I have a whole separate piece on that here. Go and read that, follow it closely, and come back here when you're done.
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Download and install PrinceXML. See princexml.com/doc/installing for instructions. Note that this is proprietary software (the only proprietary tool we use). You can try the trial version for free; it adds a watermark to your first page.
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Install PhantomJS. [Note: this step is only necessary for Electric Book template v.0.15 and earlier. Phantom is not required from v0.16.0] This is necessary for