I'm in the SF Bay area; local Craigslist regularly has PRS-500 (the old, now-unsupported version) for between $150 and $200.
I second the recommendation for a Clié and e-reading software (I prefer eReader to Mobipocket, but it's a matter of taste, and there's certainly more commercially available for Mobi). Find out if you *like* reading books on a small, portable device before you commit to an eInk reader that doesn't do anything else. If you find yourself unwilling/unable to read novel-length books on a small screen with metal edges, you can at least use the Clié for puzzles and an address book.
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