Stewart,
Yes, the hardware is a small Sony tablet, a Vaio UX running Vista that I use as my combination production computer and PDA and book reader. It has its quirks but is an excellent book reader and for something so small really a pretty good handheld computer. It has about a 3 hour battery life (I have the larger battery) when reading, less if you are watching video but I haven't done that handheld.
At the moment I am reading a book in the B&N reader software. I have forgotten if I mentioned that or not. Overall, compared to the eReader software, it has some nice features and a couple of definite issues.
First, I like the layout. Rather than pull-down menus, it has a column on the left side of the screen with major headers that access functional menus and let you look at your library, read the B&N newsletter, or red a book or magazine (I haven't tried reading a magazine yet so can't comment on that). If I tap "annotations" or another choice that leads to a list, that list appears to the right of the menu screen, with the book to the right of that. When I am reading and don't want the menu list, a tap of a radio button takes it off screen.
I also like the integration between the reader and online store, which seems so far to be seamless.
The display is excellent, and I can choose from any typeface available on my computer. I am reading in Palatino Linotype, but that is just a personal choice. The display does resize the effective type size to fit the open window, and I find that I need to set the type size for 14 point to get a comfortable size on the small handheld screen, but I have to do that in eReader as well.
However, there are a couple of things I do not like. First the store: It does now accept gift cards, which I definitely like. But they are set up for you to buy one book at a time. So if you want to buy three books the only way to do it at this time is to make three separate purchases. I find that inconvenient.
The other thing that bothers me is that I cannot find any way either to highlight text permanently or to add a note or annotation to text in the present version of this software. That's fine if all you want to read are throw-away novels, but I often want to highlight to create a set of notes on main items in a book that I can then review later and to add my own notes and annotations.
One area I cannot comment on yet, since I only have one book, is the organizational tools for the library, if any. The tools for eReader are pretty minimal, and I am hoping for better from B&N, but I haven't tried that out yet. In particular I want to be able to organize my library online rather than on my machine and to be able to cross-index books into several subjects easily. In eReader I can only organize on my machine and, for instance, I lost all my organization when I moved from the Palm to Windows, and since then I experienced some sort of software reset that wiped out all my library organization. I had that happen to me several times on the Palm, basically when I had to reset the device to get it out of a loop. On Windows I have no idea what happened. One day I opened the eReader software, went to the library, and everything was gone. I had not made any changes to anything or experienced any particular computer problems. I really don't like that. So I hope B&N has something better to offer.
So those are my impressions at this point. Of course some of this may change as B&N updates its software.
Happy New Year,