We'd need to know more about what you did. Post a pointer to your 1.txt and 1.dic files, as well as your 1.lm file. Here's a (random) thought: Your .lm looks to be mixed case. Is your .dic uppercase?
I'm not sure what this is about:
sphinx_lm_convert -i 1.arpa -o 1.lm.DMP
sphinx_lm_convert -i 1.lm.DMP -ifmt dmp -o 1.lm -ofmt arpa
.arpa and .lm are essentially the same file; .DMP files are meant to pre-compute some stuff for the on-line representation of the language model.