The Sony epubs I've tried out on my reader don't look nearly as nice as the LRFs. But I have plenty of epubs I've gotten from other sources, and I tend to like them better than LRFs. It does depend a lot on the formatting of the individual epub file, I've found. For example, I recently bought an epub from Fictionwise that had huge margins; it drove me nuts. Not enough to stop me from reading the book, but enough to make me wonder what the people who formatted it were thinking.
(But since I'm going to be switching over to my Nook once it arrives - at least I will be if I'm happy with it - I'd much rather have books that look slightly worse than books I wouldn't be able to put on the Nook.)
Once I get my Nook I'll try out some of the Sony epubs on it and see if they look better on the Nook than they do on the Sony.
Personally, I'd love to see more formatting options in the reader itself. Being able to change the font size is standard, and the Nook has different fonts available (so does the Kindle, I believe); I'd like an extension of that idea, where the reader lets you set a default font size, font, justification, margin size, and so on.
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