I read a lot, mostly science-fiction, fantasy, classic literature, and in the world of non-fiction programming-related stuff. Here's some good authors, in no particular order: Tim Powers, Neil Gaiman, Neal Stephenson, Robert Heinlein, Roger Zelazny, Charles de Lint, Gene Wolfe, J.R.R. Tolkien, Julian May, Frank Herbert, and George R.R. Martin. Try reading them sometime. In the world of short stories, I'm currently on a Terry Bisson kick.
I've recently decided to start reading (Or re-reading, in many cases) a lot of classic literature that I've been ignoring lately, much to my loss. I'm going to try and go roughly by country, starting with American, then British, French, Classical Greek and Russian works, but I'll probably end up mixing and matching for variety now and then, as well as tossing in works by authors from other countries than those listed above. Suggestions for titles and authors are welcome. Currently on the table: James Fenimore Cooper's Leather-stocking Tales. Next up: Assorted novels and short stories of John Steinbeck, probably followed by a tour of Nathaniel Hawthorne.
There's really only one link you need, because it includes listings from all over the place: The On-Line Books Page. Other good sites are Project Gutenberg and Bartleby (Named after Melville's scrivener. Remember him? "I would prefer not to"). If you're interested in ancient Greek or Roman literature, try the Perseus Project.
Personally, I like e-books for references, searching, and reading things I can't find in used book stores or the library. In general, I don't like reading e-books for pleasure unless they're the only way I can read a work, even on my Palm instead of a desktop computer. I like the feel and heft of an actual book in my hands, and the sensation of turning pages too much to really enjoy the electronic alternative. I'm not alone in that. But for Palms, try Memoware for lots of books in DOC format. There's tons of Palm readers; try some, use one you like. I prefer CSpotRun. DeepReader is very impressive, but eats up batteries like they were candy.