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Let me offer some information on this:
First, I use my ipod to regularly listen to Old Time Radio. I convert Mp3 to m4a format, which is capable of setting bookmarks - or, I should say more properly, you can start where you leave off. These programs are typically 30-60 long. Also, I've converted audiobooks to m4a with no problem.
There are a number of converters (mp3 to m4a) that will convert AND consolidate those pesky and numerous little mp3 files.
Now, I must say this: I've never used my Sony Reader to listen to mp3 files, so I can't verify whether these m4a files will work on the Reader, but my conversions work beautifully on my ipod.
I hope this in some measure answers your question.
Don
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