I don't think we have any definitive answer yet about whether the Sony Reader works with 4gig SD cards... that requires FAT32 and specifically 4gig compatibility. It also would take a long time to index if there's a lot on the card.
I did try my 4gig card in it and I know it can read from it (does that at least mean it supports FAT32?), but I didn't check to see if it could read all 4gig, or just the 2gig portion.
I've got a 1gig card in mine, but what a waste. I basically don't put any books on it unless I want the option of deleting books away from my computer. (I can do that by popping the SD card into my Treo and managing the files there.)
I like just having a short book list, so I keep it pretty clean.
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