Since I got my Palm, I’ve been searching around for free material to read. You can find a lot of classics that are out of copyright, but there are also a few new books which are made freely available under the “creative commons licence“. You might think I’m crazy to read on a small PDA screen, and you’d probably be right.
If you go to Project Gutenberg, you’ll have to convert your classics to be readable anywhere except in a PDF reader. For a few pages it’s acceptable to use the Palm PDF reader, but you’re better off with Plucker. This piece of software will allow you to program a number of news websites to sync to your Palm, indeed it can convert any HTML content into a readable document to display on your Palm, including images.
If you want a readable format directly, you could try manybooks.net but it wasn’t responding at the time of writing. You can choose from a variety of online and PDA formats.
As for new texts available legally for free online, there are two SciFi authors I can recommend.