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I think that the MS Reader "vision" was to produce a page that looked as much like a printed page as possible, which was fine when used on a normal PC screen (where it first appeared). On a smaller screen the generous margins and large font size is very restrictive, but they seem reluctant to abandon the Reader look.
It is possible (as Steve said) to force Reader to display more using a system wide VGA hack, but that is really only for adventurous souls! I did try it, and Reader was wonderful, but lots of other things weren't.
eReaders options allow you to tweak the margin and fonts just so. The end result may not look like a page from a book so much, but it is more pleasant to read!
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