You are correctly solo mining. The difficulty is high enough that it may take a long time to solve a block. I would suggest joining the pool linked in below to mine.
http://fc.dontmine.me/
Ignore the mining tab in the GUI and use cgminer.
Quick question on the pool - on the manual cash out option, it says it charges a 0.1 ltc fee. I'm guess typo?
Yes it is, it's 0.1 FC :-)
I found same amount it's charged by other FC pools. I also found same fee applies in case of very low amount payment from my wallet to another one. (0.03 FC). It says the 0.1 will go to nodes confirming transactions.