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As the owner of an iPod Touch myself, I honestly could not recommend it as an eBook reader. If you want a hand-held device (rather than a 6" eInk device) a Palm or Pocket PC is far, far better, both in terms of price and in terms of flexibility and range of reading software available.
However, a dedicated device such as a Sony Reader, CyBook, etc, is MUCH better. They are easily available world-wide.
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