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If you double-tap in the middle of the page, it will be enlarged to remove the grey margins.
Good Reader is a bit expensive but it's worth it IMO, mostly for the great file management functionalities. It's also useful to annotate PDF files, for example if you want to fill a form, and you can crop the margins of a PDF file which are often too large for comfortable reading in the iPad.
But if you are looking for free apps, I suggest you try searching for PDF in the iTunes store, I'm sure you will find a lot of them.
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