I'm researching android devices to serve primarily as an e-reader and audio player, and I am considering the Nook Color, but the Coby Kryos MID7024 is looking pretty good too, at $165 on Amazon. The Nook has a capacitive touch screen and +4GB storage (8GB total), but the Coby might be a more justifiable expense for the OP's (and my) purposes.
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