robashroy, I think you are wrong.
I tried out a Nook Color at a store about a week ago and was surprised at how well it did handle PDFs. The girl there actually had a Harry Potter scanned book on it and it loaded and moved fine. You can zoom, read in landscape, and fit to width. I was really impressed.
The only problem I had with it was that the screen ratio is not great for landscape reading. It is tall and thin, so when you flip over to the landscape mode you don't get very many lines on the screen and have to scroll down constantly.
I got a call from them yesterday that I came up on the waiting list. I'm taking a pass for now, hoping a 9 or 10 inch device comes down the pike soon. But I was really impressed with the machine's PDF capabilities. Really loaded fast and no lag moving around.
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