zaney - I don't have a Sony, but in general, yes you can purchase other formats such as mobi, lit, epub, or ereader and strip the DRM. Then using tools such as Calibre and others, you can convert the DRM free files to Sony compatible files (.lrf?). Of course, in most cases you are technically breaking the law to do so. :> Some of the terms you may want to search on include:
mobidedrm (for mobi files)
convertlit (for LIT files)
ereader2html (for ereader files)
and for epub check out the ADEPT thread in the epub area
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