There isn't one best reader as even for similar requirements, different people like different readers. There have also been many threads on the board so you may want to check them out for reference.
If you want to shop around for books, it's probably best to stick to the epub format as that is becoming the de-facto standard.
I personally like the Astak 5" Pocket Pro as it can read multiple formats, has good support on the MR board and is quite small and light.
Many of the readers linked to a particular store, such as the Kindle, Nook or Kobo, can be difficult to use with other stores so do keep that in mind.
Also, when you do get a reader, look into using Calibre to manage your library and reader, it's a great piece of software and has great support on the MR board.
Hope this helps.
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