I recently dropped my PRS500, it was about a 2 ft drop. The screen remains intact but the left hand side silver edging/paneling (the edge with the SD card flap) broke away.
If anyone has pulled their reader apart, you would of noticed the poor design of the side paneling. Basically the panel is clasped down between the two ends by two very fragile tabs. Unfortunately the force from a small drop can break the tabs leaving the prs500 with a gapping side panel.
I would hate to see the damage from a more substantial drop.
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