For local wallet mining try something like this:

bfgminer.exe --scrypt -o http://localhost: -u -p --expiry 30 --scan-time 5 --no-longpoll --no-gbt -S MLD:all

Solo mining is not support by bfgminer for scrypt mining. You can still do it, but you would need to setup a proxy thats connected to the coins RPC wallet, and then connect bfgminer to the stratum proxy like a normal pool.

Here is a good stratum proxy that has litecoin support. Of course its a bit involved to setup, but this is the currently only working solution to solo mine scrypt.

https://github.com/pocesar/node-stratum/