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For what it's worth, Borders refused to take a return on the PRS 700 today. Their position is that the Reader is covered under the 'exchanges' section of their returns policy and not under the 'returns' section of the policy. The policy they showed me doesn't actually say "Items listed as eligible for exchange may not be returned", though the store manager's position was that that is implicit as the policy was written.
She's told me she'll ask corporate if they can make an exception, but I'm not particularly hopeful.
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