Last Saturday I picked up
one of these ebook reader/media players at Aldi for just AU$50
It comes with 4GB of RAM built in and can be expanded by up to 32GB using a MicroSD card.
It can handle PDF, EPUB, FB2, TXT, MOBI, HTM, PDB, RTF, LRC formats for books, MP3, WMA, FLAC, AAC, WAV, OGG audio formats, as well as MPG, RMVB, FLC, ASF, WMV, MP4, 3GP, RM, AVI, DATA media formats and BMP, JPG, GIF, PNG images..
It also has an FM radio & earbuds, and for reading, gets about 6 hours use on a full battery, with the screen brightness set to maximum. My bus/train journeys have now improved out of sight..
Best of all.. Amazon can't touch it!
(the only downside.. there are no device drivers for Linux, (Win/Mac only) so I have to load/delete files via my Vista laptop)