Lipitor is a "statin" drug; right now the "best" available. Yes, it can cause liver problems, but they're very rare. A more common complication is muscle pains (myopathy). It happened to my grandmother (who is 84). Stopping the med and taking steroids for a few weeks should resolve it.

Oatmeal, excercise, low-fat diet, hi-fiber should help adjust your cholesterol level without drugs. However, it may not be enough.