Use CLIT 1.8 to remove the DRM and not to convert the LIT into HTML. Then once the DRM is removed, just load in the LIT directly. No need to worry about HTML and all the files you get. It's a lot easier that way. It's what I do.
One other thing you can do is once you have the key file made for CLIT, just copy it into the Book Designer directory and you should then be able to open your DRM LIT files directly into BD.
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