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No. Only Microsoft Reader is able to directly read LIT-formatted ebooks. One can de-compile LIT files using a program called (we're not allowed to talk about what it's called, especially to people living in the USA where use of such a software is illegal and could probably land such a person in jail where they'd be tortured and gang-raped by Microsoft employees, followed by RIAA lawyers...) into the component HTML and image files and sometimes CSS files... then one is free to convert these into anything else, or just to toss them into a ZIP or RAR archive and read them in ubook.
ubook is the more versatile in terms of number of formats readable. The site has information on all the extensions usable, so there's no need to reiterate that here. Mobipocket is popular. So are a few others. I guess it all comes down to what works for you. So try them all, at least the ones which offer trial versions. ubook just tosses a register message in your face these days, unlike the older versions which were completely freeware/donateware. But whatever you decide upon, I'd recommend decompiling your LIT purchases as soon as you can, just in case M$ messes up and you can no longer read them or convert them later. Besides, MS Reader is UGLY!
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