NOTE,
This info can be used to convert public-domain and personal content and works fine for that.
This info has not been tried on copyrighted material.
This info may or may not work on purchased copyrighted content, when used by the original buyer for personal use only, and is not meant to be used to distribute copyrighted material. 
Please DO NOT use this information to try and make copies of copyrighted material for distribution.

Step by step for setting up the GEBLibrarian Converter for MS Reader .LIT files to REB1100 .rb files.

The GEBLibrarian can only understands these file types: txt, html, opf, doc and rft.
So a external converter must convert from an unknown file type to a known file type.

LIT files can only be converted to OPF files and then to .rb

None of the quotes are required in the inputs, there are just used for highlighting.

Alway's use a copy of the files you want to convert so you still have your original as backup.

Run GEBLIBrarian.
Set your defaults to what you want, in this case REB1100.
Select "Settings".
Select "Converters".
Select "Add".
Fill in the Name box with a name like"Convert LIT (MS Reader) files to OPF files".
Fill in the Application Path to where you have your clit.exe file.
You should have the clit.exe file in your GEBlibrarian folder.
Example "c:\GEBLibrarian\clit.exe". 
You could also use the Browse button to get the location.
Fill in the "Imput File Type" box.  Use "LIT".
Select the "Output File Type" from the drop down menu. In this case select "OPF".
You can leave the "Timeout after" set at 60.
Fill in the "Command Line". In this case use "@infile @tempdir".

NOTE,
The command line is a way to tell the GEBLIB how to pass parameters to this external program.
And the @xxxx variables are things that the GEBLIB computes at the time the 
conversion takes place.

@infile -- the filename that was dropped onto the GEBLIB to convert.
@outfile -- the output file being created by the external converter.
(example: clit creates a file <myfile>.opf from <myfile>.lit).
@tempdir -- the temporary working directory (GEBLIB will create this and delete 
this and it is based on the name of the input file.  For example c:\My 
Library\MS ReaderTitle.lit will have a working directory of c:\My 
Library\MS ReaderTitle).
@getinput -- this tells the GEBLIB to popup a window and ask the user for an 
input string to pass to the external converter during conversion.  Rarely 
used, but nice if neeeded.

END NOTE.

Select the "OK" button.
You should now have a Converter under "Name" Convert LIT (MSReader) files to OPF, and LIT under "Handles File Type".
Select  the "Close" button and your done setting up the converter.

Now setup a folder for conversion work on your desktop, this can be called WORK or what ever you want.
Put a copy of the .lit file in this folder.
Now with the work folder open and the GEBLIB open to it's main screen, just pick a .lit file and drag it over the GEBLIB main screen and drop it.
A "create new ebook" screen will pop up.
Fill in or change the info to what you want and set the "ebook type" you want, In this case RB1100.
Click the "ok" box.
POOF if all went ok you now have a REB1100 file in your default directory and it should show in the main GEBLIB screen.

Now we need to get the REB1100 .rb file to the 1100.
You can "export " it from the GEBLIB  to a memory card using a memory card reader/writer or "export" to your eBookLibrarian auto add folder.
To do the export right click on the ebook in the main GEBLIB screen.
Select "Export to Memory Card".
Now type in, or browse to, the location you want the book to go to, you can send it to any folder or location on your computer, not just memory cards.
For a memory card reader/writer use E:\books, with the "E" being what ever your card id is.
For eBookLibrarian use C:programfiles\ebook\ebookLibrarian(tm)\library\autoadd, or the location of your "autoadd" folder if different.
Select "ok" and the book will be exported.
Now the next time you run the eBookLibrarian and connect your 1100 the files will auto add to the Librarian and you can then send them to the 1100.

That's it, I know it looks long but once you do it a couple times it's quite easy.

Enjoy.