If you can stretch it a bit to $250, Nook Color with its Android 2.2 (Froyo) update is a nice piece of color hardware. Web browsing is good, and the apps and games scene is good and getting better. PDF support is ok, but you'd have to go to an iPad to get better color PDF support, and that'd double the price.
Strictly
under $200 color ereaders are the Pandigital Novel White, the Cruz Reader and the PocketBook IQ ereaders.