I normally use the Pepper Pad sitting in an armchair, but I just tried it lying down on my chest. This does work well if you are willing to hold the PP3 upright - the screen isn't at the right angle when resting with its stand on your chest.
I don't know if there is a dedicated Plucker reader for Linux. FBReader works well on plucker files, but it does not have autoscroll. I find scrolling pages with the large scroll wheel works for me.
The PP3 is great for PDFs, since it runs the i386 Linux version of Adobe's Acrobat Reader. This can take a while to initially process the document (slow Geode processor), but then rescales and page flips quickly.
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