When they refer to the Adobe ePub, they mean epub with Adobe ADEPT DRM. ADEPT, to the best of my knowledge, is the only DRM available for the epub format currently.
Waterstones, a big UK book chain, sells in epub format. Books on board, I believe also sells in epub. There are quite a few others, but since I buy so few, I've not bothered to look all that much.
Not all epubs are secured.
I dunno about you, but I'm happy with epub rendering in the 505. I really don't see much of a difference between it and lrf.
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