Thanks to all the suggestions here ! I have made up my mind (for now at least

) and I am going with a dual reader solution. Picked up a used Kindle 1 (from the flea market here) for $200 and was able to buy a new Sony PRS-505 for $210 (had a coupon).
So for a little bit more than what a Kindle 2 would cost, I *think* I have a solution that needs most of my needs for now.
I am relying a lot on the conversions I can do with Calibre, and am expecting I will use the Sony device more on day to day basis.
Having the Kindle 1 will give me access to the Kindle store, so I will be able to buy books from there ... and hopefully be able to convert them so I can read them equally well on the Sony.
Thanks for ALL the responses here (as well as the many other threads where I picked up more info). You people are truly fantastic
Now wish me luck