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Fictionwise sell multiformat books in Sony LRF format but only DRM PDF books for Sony reader.
Books on Board sell books in both PDF and EPUB for Sony readers.
EPUB is much preferable to PDF and I try to get EPUB where possible but I have had very few problems reading purchased PDFs. Its mostly the free PDFs that can be badly formatted.
WH Smiths ebook store in the UK has also a large range of EPUBs but are usually a little dearer than the popular US stores.
Finally apart from the large library of free books here at mobileread, feedbooks and munseys.com have a large free library also available in epub.
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