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Hello rwchu2000 --- and welcome to MobileRead. I own both a Sony PRS-505 and a Kindle (1). I bought my 505 second-hand and a second-hand Kindle (1) for my daughter, so if you're impatient and wanting to save some money, I can recommend checking out the availability of used readers. I'm looking closely at the 5" readers that will be coming from Astak and Bookeen and the Jetbook also looks good.
I think that making your decision should be based on the type of reading that you do. If you're primarily reading classics or if you're heavily into Science Fiction and Fantasy, you can probably get by with any reader regardless of which format(s) it supports. That's because there are tons of DRM-free books available from MobileRead, Feedbooks, Manybooks, and Munsey's -- among others. And, you can purchase DRM-free books from Fictionwise and Baen/Webscriptions.
Unfortunately, most current-release books are only available with DRM encryption/protection. You'll want to spend some time looking at which DRM formats a given device supports and which store(s) sell those formats and what prices they charge. That may help you decide which reader will be the best for you.
Kaz has already provided a link to the Wiki with its description of the various readers and their technical capabilities. The Wiki also has a list of the known book stores.
Good luck -- I'm sure you'll figure out which reader you want and be on your way to obtaining one.
And again, welcome to MobileRead.
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