funny if you watch the video at engadget from January they nearly gave away the Google partnership then
http://www.engadget.com/2011/01/07/i...ader-hands-on/
"uhh. we partnered with aaaa... content partner that has a very large scale of free and paid content"
it does have onboard storage and sdhc so of course you'll be able to load any of your own non drm epub or ADE drm content. Google Books does not allow you to upload your own stuff at this time. so only content you get through them will be in the cloud.