Go to the MobileRead Wiki page and there are many, many programs for converting files to LRF.
Given the parameters you have outlined, there are two (2) packages that I can recommend highly. First is the libprs500 package by Kovid Goyal. It has everything you need for the conversion of text and HTML to LRF files in addition to an excellent ebook inventory system. You can also load ebooks directly to the Reader without using Sony's CONNECT software. The second package is BookDesigner by vvv. This is an excellent program for converting from almost any format to almost any other format. It is used by many of the people posting ebooks for download.
I use both.
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