I've used it to convert lit files into nice HTML, when can then be converted to isilo format. It works VERY well, exploding into the full set of html pages, image files, and the .opf file to remake the book in something like Mobipocket Publisher.
Until recently, all my DRM books have been in Palm Reader format, but I've decided to get the MS reader version from now on for this reason. The PR versions are usually missing cover images, pictures etc, that seem to make it into the lit version. You also have the advantage of being able to read the book again if you upgrade your hardware or software
Craig.
PS - I don't condone piracy of any sort, and only use convertlit to read books I have purchased or downloaded freely.