Jotheman, this may or may not be your issue, but when everything else seems right with my setup and a book won't "create," it has been a problem with the Bookit preferences that relate to path. On my Mac, they are:
Path to weblrf:
/usr/bin/web2lrf
Path to Caibre:
/usr/bin/calibredb
Path to e-books:
/Library/Ebooks/
The latter is one of my own choosing; you just need to be sure that, whatever you specify, is a legitimate path to a folder because I don't think Bookit will create one for you if it doesn't exist.
Hope it helps!
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