for me it depends on the device and whether it's being handheld or sitting on a table/stand.
Handheld with modern tablet-esque devices, like my Kindle, I prefer portrait primarily because the device balances better in my hand.
When I use my 8" Windows tablet I usually read with it on a stand in 2-column landscape mode. I use it in single column portrait mode when I'm reading handheld.
When I used earlier low resolution small screen devices (Sony Clie PalmOS devices like the UX50 in my avatar and HP 320LX WinCE devices) I usually used landscape in order to get a decent line length with a decent character size.
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