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eReader books use a markup language called Peanut Markup Language, or PML, from back when PeanutPress had their PeanutReader. To avoid confusion, the books are just called "eReader-formatted" meaning that they are formatted to be read with the eReader software. This may change now that eReader has been acquired by Fictionwise. It could simply become "pdb" or "Secure Palm" format.
Obviously, eReader software is *not* the same as Sony Digital Reader hardware and eBook Library software.
The only place to buy DRM'd books for the Sony Reader, without conversion, is the Sony eBook Store. Or, as it's called now, the eBook Store from Sony and Borders.
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