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Amazon have the best bookstore, and the best customer service by a mile. If Amazon don't sell a book, then it's probably not available. You really can't go wrong with a Kindle.
The Sony PRS-T1 is also an extremely nice reader. It uses the ePub format, which is more capable than the Mobi format used by the Kindle, but that's pretty irrelevant for novels. Sony have pretty abysmal customer service, however.
Personally I'd recommend a Kindle, but you really can't go wrong with either.
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