I've had my Sony since last Christmas. I've tried all sorts of formats, but now I prefer to use RTF whenever I can.
The main reason being it is so easy to fix typos and spacing errors.
For example if the text is too small on the Sony screen, even at "Large", just port the file to a computer, increase the font using MS Word, and port it back to the Sony (as I have done in a hotel room far from home).
The downside of RTF is you can forget about illustrations, footnotes, tables, etc. It's only suitable for plain, flowing text, such as you get in a novel or popular non-fiction.
Instead of using Textify and Wordpad to convert, I use E-Book Tidy and MS Word. I think these two programs are easier to use than the ones Draz talks about.
I prefer Arial 16 point, with page breaks for new chapters and a larger font for chapter headings, no indents, no right justification, a space between paragraphs. Makes the text very plain and easy to read.
(Here's a question for the experts - what would happen if you connected your Sony to your computer and then directly operated on a RTF file while it was still on the Sony? Would the Sony have a seizure? I'm not brave enough to try it).
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