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Yet, Sony claims it is, at least that's what I read here:
From the Sony download site:
OS: Microsoft® Windows Vista® (32-bit or 64-bit) or Microsoft Windows XP (32-bit only)
CPU: 800 MHz Intel® Celeron® class processor (or better). RAM: 128MB or more (minimum 512MB for Windows Vista)
HD: 20MB or more (depending on amount of content, more space may be required)
Other: Internet Connection (broadband suggested) 3 Port: USB (for Reader connection)
Device: Works with Reader Digital Book by Sony (Models: PRS-505, PRS-500, and PRS-700)
(Note: You do not need a device to use the service.)
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