I've got a few RPG books on PDF (Shadowrun 4th, a few White Wolf books, GURPS Mysteries). Generally speaking they are "readable" on the 505 but not friendly.
To be legible you need to have it max-size and landscape - which makes it difficult to read two-column. (You have to back up to start the second column, and the refresh delay is noticeable enough to disrupt reading, plus it's still a bit of eyestrain). I haven't tried the prs library yet, but on Linux I was able to use some pdftotext tools with success on the non-locked files (WW has crappy PDF files, but the other vendors are more friendly). This causes some text spacing issues here and there - I wrote some perl one-liners to clean up most of it.
On the whole I wouldn't recommend it for RPG books yet. Reading is painfully tiny, and the 505 is horrible to use as a reference (no search capability, and the refresh delay makes flipping pages quickly quite difficult). I say this loving the 505 for general reading.
This was one of my areas of interest as well, and from what I've learned none of the E-ink devices will be much better yet (though the Illiad and Kindle might offer text-searching).
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