Nobody has verified the PRS-500 update keeps LRF/LRX, but every Sony Reader on the market handles LRF. There really is no reason for them to remove LRF capability.
Similarly I do not expect PDF and TXT support to be removed either!
If they do remove LRF, that's crummy because it works so much better than ePUB on the Reader (headers and justification).
-Pie
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