Some progress!
.lit is a compressed ebook format, readable with "Microsoft Reader". MS Reader is apparently freely downloadable from MS, although I haven't actually tried to download it. It doesn't come with Win98 as standard, and I don't know if it is supplied with later versions of Windows. It has some DRM functionality, although this appears to be optional, and can be DRM1 or DRM5 (no, I have no idea of the difference, or if they matter). It appears to use DES encryption.
Converters:
For Windows, there appears to be a strange script piggybacking off MS tools (WinTask, MS Reader, MS Wordpad) to convert to text format. This can be found at
http://tecnodude.tripod.com . This seems very primitive, consistent with the spelling of the url. I didn't try it, as it looked dodgy as hell, and required software I don't have and don't really want.
For Windows or *nix, a program tastefully named "clit" is available from
http://www.convertlit.com
This looks fairly sensible, and seems to work, albeit with some odd effects. I get an html ebook, five other jpg files with pretty pictures of some MS Word logo (!?!), and a .opf file, whatever that is. The html works fine, dump the rest....why? However, it works. Compiled binary for Windows, source for everything else. No packages. Designed to be loved by Gentoo and Slackware lovers.
If anyone knows of any other options, I would be interested.
Jim