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I would also recommend a Nexus 7 or some such device for your needs. As for the .lit format, that is a proprietary Microsoft format, and the only supported software that I know will read it comes from Microsoft (Windows only at this point).
If you have a lot of books, be aware that the Nexus 7 does not have an sdcard slot. That is one reason I went with the Nook HD instead of the Nexus.
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Mike
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