Originally Posted by JSWolf
That is a fairly over simplified process. What I can do for you is help walk you though a conversion process. Baen books is a good source as they have free DRM-free LIT files. Just give me a URL to a book and we can begin the process. You will need MS Reader installed so you can view the original formatting to make sure yours matches well enough.
You don't really have to do that with Baen LIT files. They come out of the lit2lrf converter pretty well formatted.