Please note that you should use the LL submittter for free site submissions only. A free site accepted by most link lists should contain a index (warning) page, a main page and 2 or 3 galleries linked from the main page. You can find an article about "How to make a free site for link lists" at hqpornlinks.com/webmasters/articles/LL.htm.
As for your issue, seems like you have used an empty file in the 'Page to Duplicate' field in Step 3. You should select your free site's index page instead and let the submitter to duplicate it (with auto inserted recips). The duplicated files will be then submitted to the appropriate link lists.
Btw I also noticed that you inserted <!-- {RECIPS} --> in the wrong place inside your source code, it should be placed between the body tags (<body>...</body>).
Anytime you duplicate new files I strongly recommend you to check them before but also after their upload just to make sure everything's correct - even before you proceed to their submission! You can use the Check Duplicated Pages button in the Duplicate tab or Check Sites in the FTP Upload tab to access them easily.
Apart from the Help files included in the submitter (Help menu > Help) I also recommend you to check the interactive tutorials at
http://www.chameleonsubmitter.com/tutorials.php