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It's similar to the Reader, certainly. Same screen size, although it uses the 2nd generation eInk screens which are slightly brighter and about double the refresh speed of the original; whether that'll make any practical difference remains to be seen.
The CyBook supports MobiPocket rather than the Sony's BBeB format, but that's not important if you're doing your own conversions (in fact it may be a disadvantage - there are much better tools available to convert to LRF than to MobiPocket.
The only other perhaps significant difference is that if you buy a CyBook you'll obviously have a full European warranty for it, whereas effectively you're buying a Sony with no warranty. That's not really a problem - they are pretty reliable - but is something to bear in mind.
I'd say there's really not much to choose. If you want a reader NOW, buy the Sony - I've had one for about 9 months and it's excellent. If you can wait a few months, you might want to wait and see what the CyBook is like in practice.
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