Books.app is a simple eBook reader for the iPhone. It reads HTML and text files stored in your Media/EBooks folder, and is smart enough to enter subdirectories, if, for instance, you’ve broken a book down by chapters.

New in version 1.3.5

New options in Preferences panel: “Smart” text file conversion–if it’s ON, it’s the same behavior as always; if it’s OFF, you might have better luck with lists, or with books that don’t use double-newlines to denote paragraphs. Also, you can turn off HTML table rendering; try this if tables make your book’s layout too wide for the iPhone screen.

More subtle progress indicator on launch, and improved cover splash if you have cover art for your books.

Miscellaneous optimizations and bug fixes.

http://code.google.com/p/iphoneebooks/