Yes, I'm positive. Some of the books I had already downloaded from them can be decrypted with pdbshred, while others cannot. Most of the new downloads already have 32-bit encryption, with a few exceptions... I gather they update their encoding scheme with some frequency.
I find eReader's DRM the least obtrusive, and their prices are usually better than the competition, but I might go back to using LIT files, which can be decrypted with more ease...
I'm reading more and more on my Phone, it's a bit small but you get used to it.