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There is no difference between a v1 and v2 iLiad from the perspective of functionality. Both run the same version of the software.
If I've understood all the forum postings about these two versions, the differences going from a v1 to a v2 are 1) slightly longer battery life and 2) a change in the design for the back of the case.
The technical specs from the iRex web site state that the iLiad supports jpg, bmp, and png graphic formats.
-hope this helps,
Jeff
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