I have a Sony Reader in Australia and I faced the same problem with not being able to purchase ebooks from the Sony store.
Having got rapidly sick of format converting everything, when the new firmware arrived a few months back I discovered that PDFs purchased from stores like BooksOnBoard were perfectly readable at medium or large size depending on the books where they were unreadable before. Sure you have to put up with funky page breaks but at least it save the pain of format conversion and you can drag them onto the reader straight from Adobe DE without going thru the Sony software(some should tell BooksOnBoard that fact ).
I am hoping 2009 becomes the year that EPUB shines as they read almost as good as a native LRF ebook on the Sony and I can abandon PDF.
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