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And can one create their own reader material and convert it to the eReader format ???
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I hate to jump on somebody else's hobby horse... I suspect you are using the word eReader to mean your Kobo reader. Unfortunately, long ago in the dawn of time, some company used that word to refer to their computer program and the file format it used as input. Perhaps only old people will get confused, but I think Barnes and Noble is currently selling ebooks in the eReader format for their Nook.
For the Kobo, the file format you can use is called 'epub', as someone else pointed out earlier.