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I own an iPod Touch (basically an iPhone without the phone) and personally I wouldn't want to use it as my primary eBook reader. The screen is too small, and the battery life too short. On the other hand it makes a GREAT portable video player, and that's what I bought it for.
To the original poster - you can use iTunes on a notebook PC and store your childrens' DVDs that way without needing an iPod/iPhone. The iPhone doesn't really have enough memory to use it for serious video storage.
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