Yeah... I agree pretty much you will need a tablet. I suggest the Asus Transformer over the nook color though because...
1) You do not need to root it
2) It has an optional keyboard with second battery in it that doubles as a case
3) It comes with Polaris Office which does a good job of creating/editing MS Word Docs.
BUT it does not fit your price point. The only option in your price range that is close is the Nook Color running CM7 or other Android ROM then getting Polaris office from the market for it.
Now if you just want reduce your needs to a reader... Kindle or NookTouch would be much better due to huge battery life.
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