I have had my PRS-700 for a week or two now. I was expecting (as several people have said in this thread) that the annotations would be in a separate XML file.
The XML annotation file can easily be accessed back on your PC.
BUT, I must say that the lack of any sensible way of:
1. creating annotations on the device
2. uploading the annotations to the PC
3. printing or saving the annotations in a nice format
is VERY disappointing.
What does SONY think we are creating these annotations for?
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