I live in Launceston, Tasmania, and used to read the Cybook which I bought from the US. I now use the ECO Reader, available from Melbourne at the Reader's Feast bookstore or from
http://www.ecoreader.com.au/
It is a version of the Hanlin 5 set up for Australia. It can read non DRM'd Mobipocket, and Adobe DRM'd ePub - and of course non DRM'd ePub - and has folders. And it has been reviewed several times on the forum, including by me.
The customer service is superb, and they expect to open an Australian based ebook store in November.
Regards, Alex