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Your Sony Reader and display PDF, RTF, Epub and LRF. If you have files in LIT format these will need to be converted to either LRF or Epub and can be accomplished by Calibre (assuming they are non-DRM). Also, if you are already using Calibre you don't need the Sony software, unless you plan to purchase books directly from Sony's ebook store. Calibre will handle transferring your books onto the device.
PDF's are generally not a good format for converting or reading but Sony has the reflow which makes reading them at least tolerable.
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