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I had one until fairly recently, but I sold it for £90. The official firmware does support epub, both DRM restricted and free. There's quite a few different versions of the official firmware, a lot of people say the German one is the best (it also supports English and other languages). If you don't need DRM support, I would go for Open Inkpot, it will also read mobi files. You can switch back to the official firmware if you want to sell it or send it back under warranty.
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