Mr. Ward,
I appreciate that you chimed in. And clearly your are well regarded here.
But I have a simple question for you.
Do you use dropbox to pass mobi files using 6.1.3? If so, and you do not have this problem, I am all ears.
If not, then you most likley do not have the motivation to do all the troubleshooting that I have done to identify the likely culprit. I am an engineer by training, and have taken all appropriate steps to identify the likely culprit.
Believe it or not, it is most likely a bug in 6.1.3 that changes mobi files to rar format when imported from file sharing sites like dropbox or Microsoft Skydrive. There is no problem with 6.1.2, and the mobi files can be "sideloaded" with no probem with 6.1.3 into the Kindle app. Reinstalling various apps does not fix the problem, not does a complete system restore.