I'll add my two cents here. Although we are talking about 'zoom', what will really be needed for best performance is what I think Adobe calls 'reflow' for a document. The difference is with zoom some information will be off the page. With reflow, font sizes will remain the same regardless of page size and will 'flow' around images, etc. as needed. In the former, you need to 'move around' the screen to see the whole page. With the latter, the text reformats itself in a legible size to fit the screen size you have.
Question for a user with a Palm and Documents to Go - when you transfer a .pdf file, you only need to scroll veritically, not horizontally, right? I think the concept for the Iliad would need to be the same.
I tried loading a Scientific American magazine I have as a .pdf. You can read it, but barely due to the font size shrinking to show the whole page. To me, zoom is not an elegant solution - reflowing the text to fit the available screen is
(this is why in the .pdf discussions people use a page size of 120 x 150 mm - to get the font sizes to render at approximately the expected size).
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