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Yes, it did recognize and input my ePub books, taking them from my Calibre library as well as other locations to which I pointed. Within iTunes one can manipulate and change a book's metadata, which is good. It remains to be seen whether the iTunes metadata will then be the ones displayed on the iPad. There is no built-in ePub reader in iTunes.
How one gets PDFs into the iPad and whether there will be an Adobe Reader or equivalent remains to be seen. I'm glad to see that my ePub books (I don't have any DRMed ones) can be transferred to the iPad.
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