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.
Yep, same with sending from your own wallet I think, I sent some ltc to btc-e to test how things work, and it ripped .2 (iirc) of a ltc off me for the pleasure. The litecoin wallet that is.
If it'd been a person I'd have been grumpy. but I refuse to get grumpy when my own software diddles me out of a few quid.. lol
Oo