The original Kobo, which is the one on sale, supports epub and pdf, with and without adobe drm. That's it.
Here's a review:
http://www.the-ebook-reader.com/kobo-ereader.html
Thre things of note:
1- a lot of users seem to like the quilted rear
2- Kobo stores epubs in a sql database on the reader so, if you buy drm'ed ebooks from Kobo, note that some people prefer to go through Adobe Digital editions and then feed the epub to the kobo instead of going through the Kobo app.
3- The software has been updated and improved a lot over the last year.
Hope you have fun with yours.