Hi,
Finally, the Hebrew eBook market shows some signs of awakening.
Unfortunately, not all reading systems (eReader devices and applications) support Hebrew properly.
Hebrew is a Right To Left (RTL) language (like Arabic) and therefore needs a little different treatment.
I would like to post in this thread the current status of Hebrew support among various eReaders, reading applications and platforms. I'll try to update it from time to time.
If you have a device that is not listed here, you are welcome to check and post the results.
My main focus is on the ePub format. However, I also tested Kindle with mobi ebook...
Sample Hebrew ePub is attached here as well as a few screen captures of the expected results as seen with Calibre.
In addition, any test results for applications and devices listed here are linked to the appropriate post in this thread. Just the latest and up to date result is linked.
eReader Devices and applications that
support Hebrew 
Dedicated e-ink eReaders:
1) Amazon Kindle (3rd generation and above) -
kneidlach site
2) PocketBook devices (using FBreader) -
Test Results
3) eVrit - a dedicated Hebrew eReader based on Qisda QD060B00
4) PAGEone by Next Papyrus - a Korean eReader, possibly with a firmware update for the Israeli market -
Test results.
5) Rooted Nook Simple Touch with Android reading app that supports Hebrew.
6) Rooted Sony PRS-T1 with Android reading app that supports Hebrew. -
See details
7) Onyx Boox X61S (using FBReader) with a dedicated (Polish) firmware -
Test results
8) Spring Design Alex (possibly with a firmware update by Newpan for the Israeli market ).
Tablets and smartphones:
1) iPad, iPhone, iPod (using Stanza or iBooks) -
Test results
2) Samsung Galaxy Tab, Motorola XOOM and any other Android Tablet using a capable reading application.
Applications:
1) EPUBReader add on for Firefox
2) Calibre (On PC or Mac)
3) FBReader (On PC)
4) AZARDI 6 (On PC, Mac and Linux) -
Test Results
5) Aldiko for Android up to Version 1.2 only!!! -
Test results
6) Moon+ Reader for Android -
Test results
7) OverDrive Media Console (On iOS, Android and Blackberry)
8) Blio Reader for Android.
9) Kobo Reader for Android.
10) Readium extension for Chrome -
Test results
11) eBook Reader widget for Opera
12) Bookworm
13) BookGlutton
eReader Devices and applications that
doesn't support Hebrew
1) Adobe Digital Editions -
Test results
2) Sony Readers -
Test results
3) Nook Readers -
Test results
4) Kobo Readers -
Test results
5) FBReaderJ for Android -
Test results
6) Kindle (before the third generation while using valid Hebrew mobi file)
7) BeBook -
Test results
8) Foxit eSlick
9) Freda for Windows Mobile
10) iRex
11) JetBook
12) Alex
13) CyBook by Bookeen
14) Aluratek eReaders
15) Aldiko version 2
Below are sample screen captures of valid Hebrew display of the attached ePub:
TZR-PedroParamo.epub
TZR-PedroParamo.epub