I double-checked earlier posts just to make sure that I wasn't confusing *myself* with someone else!

Anyway, I did try the drag-and-drop approach using lit2lrf and it seems to work like a charm.

: Yay! All I need is *one* conversion procedure that works, and this is fine for me. (I gave up on conversions for a while when I got a bunch of books on my Reader and have just spent time *reading* for a while!

)
BTW, I didn't have to create and move a keys.txt file, as in Nate's earlier post. I just did a fresh install of the latest libprs500 package, and dragged/dropped onto lit2lrf. (I assume the program was modified more recently to handle this. That is one heavily evolving package!)
Thanks to all the info posted. And I am impressed by the libprs500 package, as it does a great job converting, and drag-and-drop is about as simple as it gets for using it. (Apart from having to open up the main application folder to retrieve the processed lrf files...)
Now I have a handful of Baen titles to check out on my reading list.