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Both machines support text files. The Sony supports RTF natively (but with no support for images); the Gen3 supports HTML natively (but not terribly well). Both really work best with their "native" format - BBeB for the Sony, MobiPocket for the Gen3.
Both, however, have excellent (free) tools available which will convert practically any common format to their "native" formats, so that's really not an issue.
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