There were experimental firmware with dictionary support for V3.
http://downloads.sourceforge.net/cre...9&big_mirror=0
(for fb2/rtf files and only english-russian as for now). To use a dictionary, press "2" or use menu. After it, use buttons as for T9 on your mobile phone (1=Abc, 2=Def etc.). You can add more letters or choose a word by prev/next keys. Press Ok for a translation.
So we can expect dictionary support really soon.