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tanrex, will this be your first reader? Are you sure that you want note-taking ability?
I decided to go the other route and get the least expensive reliable device currently out, the jetBook Lite. Its DRM is currently limited to eReader, so that may make it a non-starter for you.
But since electronic gadgets improve over time while decreasing in price, I recommend to one and all that they go the inexpensive way for their first eBook reader. Give yourself the time to decide whether you like using one, and what your preferences in features are.
There is no doubt that three years from now there will be available many devices which are better and less expensive, so I recommend against spending the big bucks now for your first device.
Amazon currently has a sale on the jetBook Lite for $99 with the discount code "ereader".
By the way, I too was concerned that a 5" screen would be too small, but I went ahead and got one anyway. I now feel that it is fine, so I wouldn't let that be a factor in your decision.
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