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I looked at the product page for the Velocity Cruz Reader and it comes pre-installed with access to the Border's ebook store. Based upon this I would assume it can read the Adobe DRM that is sold by Sony, Borders and Kobo (but not not B&N).
The Sony software may or may not recognize the Reader and if it doesn't, you should be able to use Adobe Digital Editions to manage any purchased or borrowed library books.
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