I use a program called text2speech to speak text to mp3 and then i
listen to the files on my ipod photo 30gb. The problem is that when i
stop the recording and then restart it, the recording starts from the
begining and not where i left off the last time i listened to it. So,
is there a way of converting mp3 files into the type of file
audible.com and itunes use for their audio books so that when i leave
my home made audio book and then return to it after listeneing to
other material the recording starts where i left it the last time i
listened to it? or any other way of getting around this problem?

really simple indeed:
in itunes, convert your mp3 to an 'aac file' (right click on the file,
conver selection to aac)
Then locate the file on your computer (probably on the my music
/itunes... directories), the should have a name like filename.m4a
change the name to filename.m4b and you go yourself a file you can
bookmark (meaning it starts again when u stoped it)

thanks a million bonhommeenmousse......i spent so long trying to find
out how to do it myself, once again thanks and if you ever need
anything just post it as a comment here, i'll get an activity repost
and see what i can do for you!

nope, jumped the gun there a little bit.....I'm using windows XP so
when i point to the file in the itunes directory it just gives me it's
name and no filename extension at the end.

not a problem either if u can't see the extension, just follow these steps:
go into the directory where the file is located
go on the tools menu, and click on folder options
go on the view tab
uncheck hide extensions for know file types
you should see the extension now !

glad to help, I would like to be part of the researcher community so I
guess it s a good start :-)

thanks again! works perfectly!