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Originally Posted by Nate the great
I bet you copied that info from the manuals. 
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yeah.
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The audio capabilities are a wash because both support two formats. The second format for the 500 is Sony's proprietary wackjob nutcase format that no one in their right mind would use. (If someone here actually uses it, I apologize.) The second format for the Kindle is the Audible.com format.
I will agree that the Kindle does not directly support RTF. But that is a very small plus when set beside the Sony Reader's negatives.
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For my uses, the Sony works perfectly. I don't listen to music on it and mostly I'm converting html documents to RTF because neither device supports html.
Since what I'm mostly reading is fan fiction the Kindle just isn't going to work for me. I like the html formatting to stay in place when I'm reading my books and don't want to spend more money getting my fan fiction converted into the Kindle format.
I only bought one book from the Sony Connect store and that was the last one because the formatting was so messed up. (font too small margins too big) But at least I was able to find another copy of the same book via IRC and get that into RTF and read it comfortably.
At this point I really HATE drm formats but Sony's saving grace is how easy it is for me to upload RTF files.
I also don't like the mini-keyboard on the kindle. Don't get me wrong, I do realize the Kindle has some good stuff happening. It's just not meeting my needs enough for me to be willing to spend 400 dollars when I already have a reader that does everything I want it to do and since I'm not really buying books as much as downloading tons of fanfiction it's not going to help me much.
Also, I don't read PDFs on my reader. you're right they look god awful.
The best thing the Kindle could do to make me interested is start selling mangas formatted and ready to read or at least support .zip. I'm not sure if they are doing it or not already but I haven't found anything to answer this question yet.