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Logseman, I think your choice might depend on where you will be getting your books. The Barnes and Noble Nook doesn't work outside the US. I've tried, and it's impossible to download any books from B&N if you have a foreign IP. The Sony Store says it's only for US and Canada but it works for me here in Japan fine.
Have you looked at the Ectaco JetBook? It's in your price range and reads many file formats so you'll be able to find books easily. I think it even has a German dictionary included.
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