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@tcv:
To answer your original question, if you are looking for public domain content (i.e. plain text, non DRM protected), the two best sites are gutenberg.org & manybooks.net. Both are set up to allow people to download classics with no copyrights remaining, for free. So anything written before 1921 is fair game & most likely available there.
The Reader will handle .pdf,.txt, .rtf. The most popular, in terms of ease of use and readibility(sp) is .rtf. PDF's do not transfer well to the device because the document thinks it is being displayed on a screen that simulates 8.5x11", so it shrinks quite a bit on a 6" screen.
As long as you purchase a supported format from other e-book sites, like fictionwise.com, ereader.com, ebooksmall.com, &tc, the file will work on the device.
How much you will pay for the file is a matter of contention in a number of threads here. ;-
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