As part of my course I contributed to VuDroid project. This is the result of it - I am working on setting this up with original VuDroid, when it will be ready for prime time. So be cautious - it's in an early alpha release. As part of this release it has these:
1. Tablet fix - Now you can read books full screen
2. Horizontal lock - You can lock screen from unintentional scrolling left/right
3. Highlighting - This is the reason it's not yet prime time, but it does kinda work. If it happens, that it doesn't read ebook, just go to that book directory and delete .xml file with the same name as book and try to open it again.
I will continue working on it and I'll update as I progress.
http://rapidshare.com/files/430384865/VuDroid.apk