How to set up Litecoin Mining.

1) Get your litecoin wallet.

Option a:

Get an address to receive your bitcoins. Using a trading website such as btc-e.com will allow you trade between different
currencies easily, as well as access your fund anywhere. The advantage to this is option is that it is mobile and you 
don't need to constantly download and sync the block chains. 

Option b:

Use a litecoin wallet installed on your computer such as litecoin-qt. This option leave you in control and is potentially
more secure. https://github.com/litecoin-project/litecoin/downloads

You can trade between your btc-e wallet and your litcoin-qt wallet but pay attention to transaction fees.

2) Choose and set up your pool.

A mining pool helps you receive a share of coins mined by a pool. This creates a steady even share of coins at the rate you mine
and is the best option if you don't have serious hardware to solo mine.

A good mining pool operator is ltc.kattare.com.

3) Choose your mining software. LTC is designed to be mined through a CPU. Newer GPU options exist, but one of the ways LTC was
intended to be mined is concurrently with BTC on the GPU.

The more powerful, faster mining software is generally run through the command line so that computer resources are not wasted
displaying a GUI.

minderd is a good miner.  

https://bitcointalk.org/index.php?topic=55038.0

Setup a Litecoin CPU Miner

    Track down and install cpuminer version 2.2.2 or higher.  (Link above)
    Create a cfg.json like so:


        {
                "_comment1" : "Any long-format command line argument ",
                "_comment2" : "may be used in this JSON configuration file",

                "url" : "http://ltc.kattare.com:9332/",
                "user" : "YOUR_USERNAME.1",
                "pass" : "x",
                "quiet" : true
        }

    Example startup (linux/osx): ./minerd --syslog --background --config=./cfg.json
    To see what's happening, tail your log file!
    If you're on Windows, your startup command may be a little different.  Please read through the thread linked above. 

Once your miner is set up leave it running and earn.