I have always been a fan of reading books on hand-held computers. I have done it since I owned my first Palm. I have to admit that probably more in love with the technique than with the books I read. In Sweden, and I also hope, in other countries, you can borrow an electronic book from the library. The only restriction is that you must have a library ticket.
I found that my favorite program for reading, MobiPocket, has a reader for Smart Phone. That's nice. I have been using it for a while now and it works great. The only negative thing is reading books drain my battery. It has to do with the long use of backlight when reading.
It has several nice functions that I enjoy. You cold rotate the text in all four directions. You could also choose in which size the text should be displayed.
Where to find books?
If you don't have the library where you could borrow them, you have to find them elsewhere. MobiPocket has a shop, but a colleague to me recommended FictionWize. This is a big on-line store for electronic books.