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The iPad has no trouble with either non-drm epub or pdf. The ibooks app is free and works well and for PDF I'd recommend the app GOODREADER. This is a very good app and will either let you view PDF's in the app or send them to the ibooks library where you can view them in the PDF section that's created next to the ePub library.
Adding ePubs can be done using Calibre or through itunes. Adding PDF's is done through itunes if you've got an app installed that can handle PDF output.
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