Stanza and Bluefire
I tried several apps and finally settled on Stanza for most of my reading. Like Caltsar mentioned above, I use the Calibre server with Stanza. This really simplifies the transfer of books onto the device. I use Bluefire to read library books and have been very happy with it also. This is the setup I use for my iPad and my daughters use the same setup on their iTouch.
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