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The 100 Free Classics that Sony is offering are Public Domain books which are readily available for free without DRM at many sites (MobileRead.com, Feedbooks.com and Manybooks.net to name a few). You will find the books are formatted much better at these other sites as well.
Books from the Sony Store with a .rx extension cannot be converted. No one has been able to break that encryption.
(Maybe there is time for a Sony Reader Myths and Partial Truths wiki as well)
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