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iTunes allows you to import your own music, but will not allow you to play iTunes purchased stuff on non-iPods. But, there are workarounds that allow you to strip any DRM so you can play the iTunes stuff on other devices. So, one way or the other, your own books will work on the iPad, either through Apple's own app or through 3rd-party apps.
I have an iPhone and I use an app called GoodReader, which is absolutely fantastic. The iPad will run all iPhone apps, so the current version of GR should run on it, albeit in iPhone-sized screen. iPhone apps can be expanded to fill the screen but with jaggies, however I cannot see Apple refusing GR for iPad.
I also have an email account specific to my iPhone so that I can email myself a document and then retrieve it on the iPhone. The iPad's Mail application will support the following (from Apple's website):
Mail attachment support
Viewable document types: .jpg, .tiff, .gif (images); .doc and .docx (Microsoft Word); .htm and .html (web pages); .key (Keynote); .numbers (Numbers); .pages (Pages); .pdf (Preview and Adobe Acrobat); .ppt and .pptx (Microsoft PowerPoint); .txt (text); .rtf (rich text format); .vcf (contact information); .xls and .xlsx (Microsoft Excel)
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