Yes, lslm is litestep module; but a very old one. No one use it since there's rainmeter which do much and better. I don't know if it is still supported by the current litestep core. I don't know how old is the theme and the version of litestep you're using.
I don't know what I can tell you. Perhaps try to define "LitestepDir" at the beginig of the step.rc

LitestepDir "Drive:\Path\To\Litestep\Directory"

IMO: don't waste too much time with this.