Does BTC-E no longer take Liberty Reserve directly?

Either way, you sir, are in luck!

Several places will exchange your LR to either Bitcoins or to some redeemable code / voucher (e.g., MTGUSD, or VouchX USD accepted at exchanges like Bitcoin-24 and BitMe)

For instance, AurumXChange does this (the normal LR 1% trx fee applies)

 - https://www.aurumxchange.com/rates
 - https://www.aurumxchange.com/exchange

Your best deal is probably through BItcoins Direct (Tangible Cryptography).  They give you a rate better than Mt. Gox even:
 - http://bitcointalk.org/index.php?topic=87094.0


And that way, you aren't having to deal with individual traders who rightfully are wary of trading their non-reversible bitcoins over-the-counter -- a method that oftentimes results in losses due to scamming.

[Update: Maybe the two of you can do a deal:
 - http://bitcointalk.org/index.php?topic=115275.0 ]