If you just want to read it on your PRS-505, Calibre will convert it to ePub (which will still contain multiple html files). Calbre does not currently have a "single-file HTML" output option. One approach would be to convert the LIT to MOBI and then explode the MOBI. The resulting single-file HTML would be ugly and might contain MOBI-specific tags, but it typically displays ok in a browser. Using Calibre's command line this would use any2mobi and then mobi2oeb.
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