I tried using some html files (actually converted lit files to html) in FBReader and had the same problem. Then I used Plucker Desktop to convert the set of html files into a single plucker file and FBReader works great with that. In my converted lit files there was an info.html that was the inital page. Pointing to that file in Plucker desktop created a perfectly working plucker file that FBReader reads just like the original html files and it is just one file to contend with and it compresses as well. I am very happy with Plucker and FBReader on the 770. I finally have something better to read lit (non-DRM) books that my Dell Axim X50v and MSReader.

Pete