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I would recommend the HD2 and the Freda epub reader. The Mobi app is fine, too. The HD2 has a much bigger screen (though is only a little taller and wider) and a higher resolution. And it is faster and more flexible. You can make it even better by getting one of the advanced custom ROMs from XDA devepers. And for reading, don't forget the exchangeable battery, a big plus that you can carry a spare.
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