Originally Posted by Nate the great
The LIT creation is command line only. Fortunately you do not need to type; you can drag and drop the files.
Convert the ebooks to Epub. (This should provide the best quality conversion.) Then use the "save to disk" feature, and save the epubs to your desktop. Then open a window and navigate to the calibre folder. Drag just the epub files over the "any2lit" icon. This should start the conversion. The files should be wherever MSReader puts LIT files (probably in your My Documents folder).
That is nuts to go from Mobipocket to ePub to MS Reader.
The best solution is to open a command line prompt and use any2lit to convert the Mobipocket files to MS Reader. But the one thing you will have to deal with is that the graphics in the Mobipocket files are of a lower resolution then the ones that come with the MS Reader and ePub versions.