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You can drag files back from the Reader back to the library folder, no problem. There's also copies of all the books, pictures, music, etc originally on the Reader on the install CD in the "Content" folder.
You can add books to the Reader without disturbing the content already on there, too. Just drag them to the Reader icon and it will add it to the contents already there.
If you're setting it up as present, though, be careful you don't wind up setting up a Connect account the "giftee" can't access on the Connect website. Not a problem if it's a gift for an immediate family member and you're planning to keep in on your account. Could be a problem if it's for Aunt Flossie in North Dakota, though.
From an engineering standpoint, there must be some impact on battery life if you use an SD card, but the battery life of the Reader is so long you'll never notice it as a practical matter.
Merry Christmas to you!
Cheers,
Bob
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