Like Don, I get about 300 or more novels on the internal memory of my 500. I did experiment with both SD and memory card and found several things: 1) the battery did drain faster; 2) it took a lot longer when I added a book or deleted a book (even from internal memory) after I detached the USB cable before the reader was usable; 3) page turns on any book, even one in internal memory, took much longer.
So I gave up -- same with the MP3 file feature -- I experimented with it but found it's so much easier to use a dedicated MP3 player. I have a Creative Zen with 16GB internal memory (I bought it just before they came out with the 32GB version) flash memory and I have a 16GB SD card in it, so I've got about a year's solid listening (just joking, but close).
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