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LIT is Microsoft's format for ebooks. It's was around long before EPUB or MOBI ever existed. Most of the books I have purchased are LIT. I like LIT because it looks very much like a real book on a desktop and is a very nice reading experience. LIT ebooks opens in the Microsoft Reader program and has some nice features.
I was disappointed to learn that LIT did not work well with the Pocket Pro. It's an old format so really it should be working. However I have since found it's super easy to convert a LIT book in Calibre to EPUB so that's what I do.
Anywhere you see Microsoft Reader format being sold those are LIT books.
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