Thanks AnemicOak, I have tried what you said and loaded in the file using Sony's software. The happy part is that there was no formatting required. The unhappy part is that the reader hung (needed a reset) when I tried to open the ebook.
What has worked however is if I convert from Lit to Pdf using the ABC Lit Converter, then convert back to lrf using libprs500. Unfortunately, by doing this I lose all my hyperlinks and the formatting is way off... a poor compromise but so far the only solution that has worked.
