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I'm pretty satisfied with either, my Sony PRS505 and 600. The 600's dictionary is really useful. I didn't have a preference for the Sonys, but this is the only brand directly available in stores here. I've read about the Iriver, and its mp3 player obviously seems to be really great (ok, this is not the main usage and Iriver is known for its mp3 players, so no wonder here). I would have loved to see the Iriver as I like its clear design, but I think in functionality, the 600 from Sony seems more versatile and stable. In terms of readability, I think the Iriver compares to the 505. If you don't like a touch layer over your display, the 600 isn't for you. It has its known trade offs, but I just loved the pdf functionality.
As from what I can read in your initial post, I think the Iriver should be more than ok. Looking at the price point, it seems to me that this is a no brainer, unless you like Sonys design better. In terms of "just" reading novels and such, I think you could use any reader, so I would jump at the lowest price.
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