Why not try the Usenet? I have downloaded over the years about 22500 e-books. Admittedly, there is a lot of crap floating around, but I have now 530 'favourites' in my PRS-505.
Most of the books are uploaded in PDF, LIT, TXT or DOC format. They are all very quickly re-formatted to RTF.
Mind you: I am Dutch. And in my country, downloading of copyrighted books is is not considered illegal (Uploading is, but not downloading).
Good luck!
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