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I haven't tried the free stuff from Gutenberg, although a lot of the stuff that probably is available from there is sold for under $1, AND you get goodies like a browsable table of contents, linked footnotes, other formatting niceties.
You can transfer files yourself, either by linking to your computer with the supplied cables, or you can email them to yourself. Actually, I've already mailed myself several large PDF files that converted quite nicely (this is listed as "experiemental").
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