Seen and played with the Kobo. As a straight eBook reader, I think it does a great job. If you ever think about needing any additional features, then I would go with the Nook. I just was impressed with it is small input screen. I have a Sony 505 which is great but I just upgraded to a Pandigital Novel because I wanted something that displayed PDFs better. Plus it was color & full screen touch screen (and I paid only $100 for it with discounts).
Go with the Kobo.
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