I do pretty much what eljacob said. My purchased LRX books (copied to the Reader using Sony's software) are on the machine itself. My "home-made" LRF books (copied to the Reader SD card using Calibre) are on my SD card.
For the person who said using Calibre with LRF will cause the Reader to reset, the link specifically addresses news feeds created in LRF. Don't know why there's a different, but I have over 500 books on my SD card - all "home-made" LRFs that I've transferred there using Calibre. I love what it does with "collections" using the Calibre tags.
I have not attempted moving my LRX copies to Calibre. Didn't think it was possible, although I see uplist there's a reply from someone who said he's doing it.
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