Although the deal isn't as hot as it used to be, I think buying via eBay with the Live.com Cashback is a sweeter deal on almost everything electronic.
I purchased my red Sony Reader for $274 from Datavision (Authorized Reseller, so I do have warranty). Free shipping and no tax. At the time, Live CB was at 30%, so in the end, I got a brand new Sony Reader with warranty for only $191. Albeit, I do have to wait 60 days to be recredited the difference, but I think it's worth it.
For more info on the Live.com Cashback promo.
SlickDeals - eBay Live Cashback Thread
Current CB is at 8% or 15%.