There are also plenty of free ebooks that aren't classics & fanfic; most of the places listed at the Mobileread Wiki's free ebooks page are classics (mostly fed by Gutenberg), but some aren't--there are a number of Creative Commons releases at Feedbooks.com, and the Baen free library has lots of books.

I haven't sorted out the ADE software for library books 'cos I recently "upgraded" to Vista (it doesn't feel like an improvement) and haven't bothered installing anything that will read DRM'd ebooks. Between fanfic, free promo ebooks and the occasional multiformat book from Fictionwise, I never run out of stuff to read.