Hi Yusra,
Running for 1000 iterations should have converged the free energies, although the results indicate otherwise. When looking at the PDB files you are trying to see whether there are any overlaps between the ligand, water cluster or protein, or if there are weird or unusual conformations of the ligand or protein.
Yes, you should look at all of the bound_*.pdb files that are in the output directory. You can do this as a movie in VMD by typing
vmd output/bound_*0.005*.pdb
(the above command will show the lambda=0.005 trajectory, i.e. when the ligand is bound to the protein)
or
vmd output/bound_*0.995*.pdb
(the above command will show the lambda=0.995 trajectory, i.e. when the water cluster is bound to the protein).
You can visualise the swapped water cluster by highlighting the molecules with "resname SWP". The swapped water cluster will overlap with the ligand, as this is being swapped with the ligand.
I would particularly look at the first ligand (the one with free energies of around 40 kcal mol-1), as these values are very high, which indicates that the swap water cluster did not bind as well to the protein as the ligand. Looking at the structure in VMD may help identify why (maybe the swap water cluster was too big or too small to fit into the binding site?).
I would also look at the last ligand (the one showing free energies between -9.8 to +380 kcal mol-1), as this implies that the calculation did not converge at all. This suggests that something went wrong, i.e. the ligand was badly overlapping with the protein, or the swap water cluster was badly overlapping with the protein.
Best wishes,
Christopher