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A bit of history:
Back in the mists of time, there was a very popular bookreading program called "eReader". It was supported on pretty much all the popular handheld devices of the time - Palm machines, Pocket PCs, etc. The eReader format (and the associated bookstore) was owned by "Fictionwise".
B&N then bought Fictionwise, and the eReader format with it. Thus, when they created their eBook store, they naturally used the eReader format for it. So, it can be used with handheld devices, mobile phones, PCs, etc, but not with any currently available eInk Reader, although, as you may know, B&N are about to launch their own reading device in the USA called the "nook", which will support eReader format.
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