Originally Posted by JSWolf
I'm talking only about original LIT files where the results will be fine. Not the homemade LIT files made by scanning the book. Using a LIT fille that was from an authroized ebook seller (such as Simon and Schuster) and then removed the DRM and finally converting to HTML will look best. The homemade pirated books in LIT format look horrible mostly even in LIT format.
In fact it was a LIT file from Simon & Schuster that converted to one very large paragraph. I agree though that homemade LIT files are all over the place in content quality and format.
The original question was a choice between LIT and HTML files for the same book. This indicates that it is the same source for both files (such as a publisher's web site or a place like manybooks that does not carry the exact format desired.) Since the same group created both the LIT and the HTML files and you are using an HTML file as input to your conversion program, the extra step of converting from LIT to HTML is useless as well as a waste of processing cycles and time. I stand by my original response.