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I upgraded to a nook from a PRS-505, and have been very happy so far. I was in the middle of reading an ePub on my Sony when I got my nook, and finished it on my nook, and was very pleased with the reading experience. So far, no button cracking or other physical issues with my nook, and I've had good success with the 1.1.1 software. Battery life is definitely worse, but I figure that is a fair trade for not having to use the Sony Reader Library software anymore. Plus, ebook price and selection is significantly better through B&N.
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