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The Reader does display PDFs and it displays them very well. What it does not do is display A4/Letter PDFs in easy to read form on a 6" screen. The native structure of a PDF file is designed for printing and is often used by the advertising industry in sending copy to publications for insertion. It does not reflow.
Sony used code written by Adobe for its PDF rendering. They are also one of the launch partners for the new Digital Editions software. This software does promise to be reflowable. It has been speculated that this will be incorporated in a future update to the Sony Reader. However the beta for the Linux version of Digital Editions is not expected from Adobe until this fall.
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