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Books that I've formatted for eReader include Cory Doctorow's Content and the three Chaos Chronicles giveaway books by Jeffrey Carver, among others. They all have their own download sites, so I didn't think there was any need to put them here.
In regard to proofreading, the level of proofreading I would provide would be on the order of a glance-through to make sure that italics hadn't gotten left on for entire chapters by mistake; I would assume that the manuscript they sent me was already proofread.
Fictionwise/eReader does not, as far as I know, accept user-submitted books. However, if someone wanted to sell his book in eReader format, there is nothing preventing him from hosting it on his own website (now that Fictionwise has changed their EULAs so that eReader books may be sold commercially without having to pay royalties).
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