Your description of how to get from DRMed LIT to DRM-free ePub is correct.
You don't need to use Desktop Adobe Digital Editions at all for DRM-free ePubs. Just copy them over to the Pocket Pro via USB and put them in whatever folders you want.
If you buy DRMed ePubs, then you will need Desktop Adobe Digital Editions to get them from the ebook store. You can then either strip their DRM (ineptepub.pyw) and put the DRM-free copies on the Pocket Pro, or authorize your Pocket Pro (plug it in via USB and open up Desktop ADE, which will have an authorize option). Once authorized, you can put DRM-ridden ePubs in any folders on your Pocket Pro or you can have Desktop ADE copy them over for you (and then they will all end up in one folder).
What the authorize step does is put a decryption key onto the Pocket Pro, so that mobile ADE can decrypt any DRMed ePub (or PDF) it opens with that key.
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