Let me answer your questions one by one.
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Originally Posted by MrAngus
1. Can I download e-books directly onto my Iliad without a computer? If so, how?
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Right now, this is possible to do with public domain books through the
iNewsStand application. You can also subscribe to and download RSS feeds as well.
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2. I have subscriptions to The Washington Post through pressreader and to the NY Times reader. Can I somehow get these on my Iliad?
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I've never used pressreader. I suspect you have to read the paper through the program. Unless you can ouput the paper to pdf of some other format, it's not possible.
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3. If I install one of the browsers you smart guys developed, can I then just surf on the internet in hot spots, without having to do anything else? And what about the company's warranty if I install this.
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I see you have the "book edition". This version does not include wifi. Unfortunately, you won't be able to jump on a wireless hotspot. You should still be able to install a browser and connect to a wired network however.
Edit: Looks like you have a 2nd edition, not book edition. If the hotspot is open (without protection, or login information), you should be able to connect without too much difficulty. You'll need to open the connection manager first, then create the connection. Then, you can use the "Start Networking" scripts included with the browsers and surf away.