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The iLiad supports MMC cards, so it will accept some SD cards up to 1GB only. iLiads don't support SDHC. I use a larger capacity SD card in a USB card reader stick, as they plug directly into the top of the iLiad. I haven't tried SDHC like this - it may work.
You may find browsing news websites with the iLiad via wifi quite slow. I do browse with the iLiad via wifi, but only when I have time to spare.
CHM files can be converted to Mobipocket format (the simplest way is by dragging and dropping the CHM file onto Mobipocket Reader on a PC) and I've done this successfully with small CHM files. Multi-level hyperlinks worked and the file was quite fast to load and browse. I doubt a large complex CHM would convert well by this method, though.
While the SW will come with a browser, I suspect browsing news websites with that might not be a satisfactory experience. No timeline for the SW yet.
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