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Using third party free software, such as Stanza and Calibre, almost any format can be read on any of these devices by a very simple conversion process that takes only a couple of minutes. I own both the latest version of the Sony PRS-505 and the new Kindle 2. If I had to chose between them I would prefer the Kindle by a wide margin.
Compatibility simply isn't much of an issue and remember, the Kindle has that 240,000+ library that continues to grow by leaps and bounds. For me it's a no-brainer. Another consideration is that Kindle books can now be read on the iPhone/touch with no additional cost--and with two way sync.
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