I've tried reading Manga on my old Sony PRS-505 but realized its screen resolution is just not ideal for Manga. Plus it lacks the processing power to zoom in and out of pages quickly, when dialogues become too small to read, hence the small screen size.
I've seen someone using the Kindle DX, but it still suffers from the same processor problem.
If your budget is right around $500, give iPad a try, and I highly recommend the free Cloud reader app (free).
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