Originally Posted by JSWolf
1. Run Book Designer
2. Open the DRM-free LIT file
3. Proceed to clean it up. Most of the problems will be titles and subtitles that are not really titles and subtitles. I just convert them to paragraphs and fix the excess spacing if there is any.
4. Once you've cleaned up the book, save it as Book Designer (HTML0) and Sony Reader and voila.
That is a fairly over simplified process. What I can do for you is help walk you though a conversion process. Baen books is a good source as they have free DRM-free LIT files. Just give me a URL to a book and we can begin the process. You will need MS Reader installed so you can view the original formatting to make sure yours matches well enough.