[Cusco]

Hi all,
I am looking for an Ebook reader.,
Mainly I'll be using it to read classics and the occasional new release.
As well, scholarly research articles in PDF format.

I was fairly set at the Kobo due to the price point, but now the Kindle offers better features for less money (namely dictionary, better ergonomics, higher contrast, and greater speed). Mostly it's the dictionary feature I would REALLY like.

I was going to order the Kindle 3, however Amazon want to make it completely exclusive to their brand by not allowing EPUB. Most of the free books I find online are in the EPUB format. So I had a few questions

1) How is the conversion from EPUB to mobi? I know what software to use and whatever else, but I don't want to be resolving punctuation issues with my EBOOKs.

2) Will the dictionary work with ANY book?

3) Is the DRM very messy with Amazon, ie. does it feel like you are locked in and Amazon has their hand in everything you do concerning your ebook purchases etc.?

Thanks for any replies.
Cheers