Also...you need to delete daemon=1 as the litecoind daemon is not used anymore....
you need the user name and password in the .conf file also so it looks like you need to add that and delete daemon
How are you starting the server when you start it?
with the newest version of litecoin in windows command prompt you'll want to start litecoin-qt like this: After you "cd" to the location of litecoin-qt installation....type: litecoin-qt.exe -server -disablewallet -addnode (static ip address of your litecoin-qt server machine)
make sure you have a static ip set for the machine you are running your server(wallet disabled for mining)
fist open a command prompt by clicking cortanta and typing "cmd"...once the command prompt opens...type: ipconfig
Now minimize that window
go to "network and internet connections", click "change adapter options" then select the connection you are using with a single click to highlight it...
Then at the top click "change settings of this connection"
once that pops up double click "Internet Protocol Version 4 IPV4"
now pick any number between 50 and 254 and asign that to your machine...
example...if using belkin 192.168.1.254
now set your subnet mask
Go back to your command prompt window and copy and paste the subnet mask or just manually copy it
then type in your gateway...(should be the ip address of your router)
set your DNS to 18.104.22.168 and 22.214.171.124 for google or 126.96.36.199 ans 188.8.131.52 for comcast
now you will need to manually add your machine to your router using the new static ip address you just made and the MAC address listed oon the command prompt window for the device you are running your server on....
once you have manually added your static ips and device ids/MAC address for your Server and miner to your router and your .conf file has matching information...you should be able to start litecoin-qt from command prompt and then start your miner
One more thing you can do is download bfgminer and point bfgminer to your wallet and then your miner to bfgminer and it will show up as a Proxy worker...This is just another option and I would not try this unless you cant get it working the other way first....proxy servers can be really tricky