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You can use Sony's ePubs fine. You have to use Adobe Digital Editions as they have ADE DRM. I also use my library's Overdrive ePubs and PDFs. B&N seems to have a proprietary DRM so you probably can't use Nook-formatted books. (I can't test with free ebooks because the download doesn't work in Canada).
I've also bought ePubs from FictionWise and downloaded some free stuff that was not DRMed from misc sources.
BTW, if you are not doing so already, it's a good idea to download your Kobo books in ePub format as backup. You will need Adobe Digital Editions. For each book, click the button to download ePub, which actually dowloads a small .acsm file. Double click on the .acsm file and it will download the actual ePub and open in ADE. You don't need to load it on your Kobo, but now you have that file on your computer and not just your Kobo.
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