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Welcome to MobileRead.
I'm the proud owner of both a Kindle and a Sony 505. I prefer the Kindle since I find the controls on the Sony hard to press. But, my hubby bought me the Sony cover with the lightwedge. That makes it convenient to use when reading in bed or in the car at night. Since I buy SF from Baen/Webscriptions, I can put the same books on the Kindle and the Sony and move from one to the other while reading the same book. I sure wish I could get an equivalent cover for the Kindle!
The previous posters have given you pretty good information. Regarding putting other content onto the Kindle: The Kindle will handle plain text files just fine. PDF files need to be converted; you can try it yourself or you can send to Amazon. I ran an experiment and found that the one I converted looked better than the one that Amazon converted. (Note that they do *not* scan the PDF files; they simply put them through a software conversion tool.)
Regardless of which reader you get, you're in for a treat. An electronic reader is a wonderful device for all of us book lovers.
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