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ADE stands for Adobe Digital Editions. It is software created by Adobe.
Adobe ADEPT is DRM encryption typically used for PDF and epub. If you plan to borrow books from the library, they will usually be PDF (but sometimes epub) and will use the Adobe ADEPT DRM scheme. Only device that have ADE will be able to read these library books. From my understanding, these devices include Sony 505/700, the new Cool-er and the new Astak Mentor readers. Other devices may be using ADE in the future and users may chime in for corrections.
Most libraries carry PDF and Mobipocket, although I find libraries carry more PDF than Mobipocket but there are exceptions. Also, reading a PDF document on a 6" device is not for everyone. The ebook is reflowed and the result has some quirks that one would need to get used to.
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