I've owned four different Sony Reader models at one time or another. I've been lucky as none of them had the screen fade issue, which I think was traced back to a bad batch of LG screens, as banjobama indicated.

I did have the screen issue on a Kindle 2 and had to have it replaced twice before I got one without the fade issue. I think the K2 screen fade issue was also due to the LG screens.

One thing I learned about replacement models from Amazon is that your new K often gets replaced with a refurbished K. I don't know if Sony does this too or not. I finally had to demand that a brand new K replace the second faulty device. I told Amazon not to ship me anymore returned items as they were most likely returned with the same problem I was having. I gave them the ultimatum of giving me a brand new device or refunding my money. They sent a new device and it worked as it was supposed too. So if you keep getting a string of Sonys that have the same problem make sure they ship you a new reader rather than a refurbished one.