The majority of what I've been reading so far is PDFs (maybe a couple DjVu files too). Perhaps it's just the types of PDFs I've been reading, or perhaps my standards are really low, but I haven't had that many issues. Some aren't comfortably readable until I hit the zoom button to get rid of the margins or do the same and rotate, and then it's a minor inconvenience that I often end up with the page split into 3 sections with the last one just having a page number on it.
Only a couple PDFs have been completely unreadable, and they're usually the very flashy ones with small text over a background.
I have yet to actually read (as opposed to just glance at) any files that are either made for this screen size or are able to automatically format for it. I definitely need to look around for what my options are here, whether it's finding things in a good format to begin with or finding a good format I can convert to.
Do many of you use Plucker? That always formatted well on my Palm and Project Gutenberg offers a lot of books in Plucker format, complete with illustrations.
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