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To start with, you have to "set" your Sony Reader to a country. Although I live in Europe, I chose to set mine to the US so as to have access to the US Sony store.
So far, what I buy from the Sony store, I buy with gift cards that a friend in the US purchases for me - and then she e-mails me the code (which is all you need to register the gift card on the Sony site). When you buy your first book using the gift card balance, they will ask you for your "home" address, which can be just about any US address. After that, they don't seem to worry about your IP address.
Have tried using my US credit card on the Sony site, and when I do, they seem to check the zip code of the billing address you give (which must be a US address) to the zip code of the billing address of the card. A couple European members here on MR have reported success in entering their European credit cards with US addresses, but I'm not sure how they are fudging the zip code control.
But other than the Sony store, I've been buying most of my purchased books from Kobo. They don't carry all the same titles, but they tend to have better prices on those I've checked.
Have yet to try buying from Waterstones or WH Smiths (i.e. in the UK), but it appears from their websites that they'll sell to anyone with a credit card, regardless of where your Reader is "registered." Am hoping that Border's new e-book store will be the same.
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