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ozwrangler, welcome to MR!
I'm afraid this is a question you can only answer yourself. The greatest advantage of the iRiver HD is its excellent screen.
How do you generally feel about the iRiver? Do you love reading on it? Is it easy for you to select a book?
To the problem of line spacing/font changing:
I don't know if there is a workaround for library books as they are copyright protected.
But you can play around with "Pride and Prejudice" and see if you like the results.
If you're not having done it already download Sigil. Open the book in Sigil and there you can adjust the stylesheet file (in most cases it's stylesheet.css).
There you can set margins, font-size, line-height, add a different fontset ... You will have to learn a little bit about html and css, but it is not very difficult and once you have found the settings you're satisfied with it will only take you a few minutes to apply them.
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