For those looking for a device strictly for reading, the new Kobo is a nice little option. It's small enough to slip into a pocket, can do more with a PDF than the competition, and at $129, it's $10 cheaper than both the Nook and Kindle WiFi.
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With Jolicloud Express, default is half of the free space and minimum is 4GB.
With a bootable flash drive, you can choose 1GB if you want...