One of the main issues I have with ABC Amber Lit Converter is that it seems to be based on code from ConvertLIT 1.2a which as we all know is buggy. It loses the space in front of italics so you get something likethis instead of something like this.
Anyway, you have a few choices. You can use lit2lrf, convert the lit to html and use html2lrf, or load the lit into Book Designer. lit2lrf is a simple solution if you have an original LIT. If you have one of those god awful user generated poorly formatted lit files, then Book Designer is a better choice unless you want to convert the LIT to html and use html2lrf. CLIT 1.8 will work for strip the DRM from the lit and if you want, convert to html.