I have two gadget for reading ebooks. Three, actually, if I count my O2mini. With O2mini and HTC Touch, I use microsoft reader to read .lit i bought from fictionwise. Now i'm starting to buy .prc since it also provide comfortable reading with these windows mobile device.
Now I have add iPhone, and I found ereader a much better - and much restricted - apps to read. I downloaded Neptune Crossing.pdb and put it in my personal upload folder at fictionwise, to _then_ download again via iphone. what a hassle. Reading with ereader, i found the .pdb has no chaptermarks, something that would be useful with ereader since it doesn't yet allow us to jump pages. swiping pages back and forth to go back to 20 pages previous or after is not a nice experience. So I think what Robotech_Master did - finetuning the .pdb - is a good idea.
As for .lit format, perhaps Jeffrey decided that it's not a popular format anymore so it's not provided as available option?
tk, currently trying to grasp the chaos thingy