I have used the beta of DE without a problem and look forward to the future support in the Sony Reader.
As for tools to create the epub files, I expect that once the format is published (I have not checked so it may have already been made public) that a number of 3rd party PDF tool creators will add it to their offerings.
I see this opening new doors for the Sony Reader. Perhaps this is what the additional 30 MB of space is for in the Reader that we found that was beyond the original specs.
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