I've taken my Readers on a few vacations and travelling with them is not a problem. If carrying on luggage then just leave it in the carry-on bag when going through security. When on the plane it works the same as any other electronic device, meaning turn off or standby with taking off or landing.
When near a pool or on a beach I usually put it in a ziplock bag. They are not waterproof but water resistant enough to repel water droplets. If I'm in the pool, I prefer to have a beach bag to keep my Reader out of sight of others. Wrap it in an extra towel and bury in the bottom of the beach bag for safety.
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