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You want the 7 inch white color. It does only have a 1 gig internal microSD compared to 2 gigs for the black, but you'll want to get a regular SD card for the external slot to hold your books/videos/music anyway.
The white model runs Android 2.0 and has a variety of custom firmwares (unofficial) available over on slatedroid. This lets you soup up the processor, add google market, etc.
The black model runs Android 1.5 or 1.6 (I think). I think it has less RAM and a slower processor as well. Older Android means less apps will work on it.
The white one is a good buy (was a great buy at 60 dollars when Kohls had them on clearance). I actually use mine pretty much exclusively as a reader. The stock reader app works pretty well, and I have Kindle, Alkido, and AdobeX on there too. The screen isn't great, but properly adjusted it works fine for me.
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