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I read whole books on my 1st generation iphone and I love it. I prefer it to my Sony PRS-300. The iphone is always with me, I can read it in the dark, it has a touch sceen, dictionary, and search feature.
However, I don't like reading PDFs on it and that's the one case where the Sony wins. I spent some time trying to get Calibre to convert the PDFs, but got poor results and gave up. I don't need to do anything in Calibre to format epubs and ereader files for the iphone.
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