One of the biggest hesitations in my deliberations between an iPod or a Nook for ebook reading was the lack of an iPod app for the DRMed ePub files. The iPad coming out next month is supposed to support ePub, but no one is really sure yet what kind of limitations it might have. Luckily, you can read ePub books now on your iPhone or iPod Touch through a free app called Txtr.
Txtr is still in its beta phase and definitely lacks the elegance of Stanza. For example, you can change font size, but there are no bookmarks, annotations, or status bar to show how far you are into a book. However, you can read any ePub file (except ones borrowed from the library; if there’s a way to do that, I haven’t yet figured it out). All you have to do is sign in to your Adobe Digital Editions account, which you have to register for to get DRMed ePub files anyway.
The desktop version also allows you to sync pdfs, Word docs, Powerpoint, Excel and rtf. You can drag and drop the files, or email them to your Txtr account. Unfortunately, the iPod app doesn’t support reading the Word docs. Customer service was friendly and speedy when I asked about it, though. And everything is still a work in progress.
The Txtr site itself is rather bare bones, but you can find more info from their execs at Teleread.