That’s pretty easy actually and can be described in few simple steps:

1. First, you need to bundle your favorite subscriptions (or all subscriptions) at http://www.google.com/reader/view/#bundle-creator-page. If you have your subscriptions at Google reader organized into folders, I’d suggest to make a separate bundle for each folder, this will make the resulting periodical better structured. To create a bundle out of a G.Reader folder click the little arrow on the right of the folder’s title as shown on the screenshot, then select “Create a bundle” in the popped up menu. That’s it.
2. Once you have a bundle created, copy the link to its feed to the clipboard (right click on the “Add a link to your website or blog” link and select “Copy” in the popup menu. You’ll need that link on the 4th step.
3. Now open Sendtoreader in another tab of your browser, log in and navigate to “My periodicals” page and create a new periodical by clicking on the “Add periodical” link.
4. Paste the feed link you have copied on the 2nd step in the “Sources” field… don’t forget to add [100] in the end of the link – to limit the number of items this periodical will contain. The number can be even higher thogh.
5. Repeat steps 2 and 4 for each bundle you’ve created in Google Reader. Remember, you can either paste all feeds into single periodical or create separate periodical with its own scheduling and other settings for each bundle.
6. Finally, setup the schedule and other options of the periodical and save it.

As a result, you’ll receive all articles from your Google Reader as a nice formatted, easy to navigate Kindle book (or periodical) along with all images and full texts. 

A side note: why do we need bundles? We need them for 2 reasons: first – they give us the feed link (the one we’ve copied on the second step), there is no other way to get such link for a folder inside your G.Reader or to the entire Reader list of articles; the second reason is flexibility – if you want to add another one rss subscription to the existing periodical, you don’t need to change anything in your periodicals on Sendtoreader, just add that subscription to one of the bundles you’ve created for using with my service.

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