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Originally Posted by wallcraft
Encrypted files formats (e.g. files with DRM) are not transferable, and most new books are only availabe with DRM. Fictionwise supports several formats and has a good reading software and devices FAQ. There are some formats not coverred by Fictionwise. EbookMall has a similar Device Comparison with a few more formats. The Sony Reader only reads DRM e-books from the Sony store.
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The Sony Reader will read PDF, TXT, LRF, and RTF. RTF does not display graphics. PDF does sometimes need some cleaning up with PDFRead. LRF can be read with and without DRM and there are a number of tools now to convert content into LRF formated files. Such a Book Designer, Libprs500 (which includes html2lrf) and a few others. So yes you can make LRF format books easily. And if you purcahse DRM protected LIT files you can use CLIT 1.8 to strip the DRM and then load the LIT file into Book Designer to convert to LRF with no DRM. It's actually not diffcult to do so. I've done it with LIT books I have purcahsed. So the Sony is not a DRM only nightmare. Because of the work of some talented people, it's quite open ended overall.
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If you don't have any e-books yet, the nearest thing to a "future proof" e-book with DRM is probably MobiPocket. This is already supported on many devices, and MobiPocket is now part of Amazon. The iLiad is expensive, but it includes MobiPocket Reader and also FBReader (which reads many kinds of e-books without DRM). Otherwise your MobiPocket choices will come with a LCD (rather then E-ink) screen. However, the Amazon Kindle (if it is ever made commercially available) will be a less costly MobiPocket compatible E-Ink device.
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If you already have books in MobiPocket format for say a palm device, then the Iliad might be a good choice. If you are starting fresh, then look at the Sony Reader as well.
Jon